Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (Text with EEA relevance)

REGULATION (EU) 2021/947 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (Text with EEA relevance)

TITLE I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation establishes the Neighbourhood, Development and International Cooperation Instrument – Global Europe (the ‘Instrument’), including the European Fund for Sustainable Development Plus (the ‘EFSD+’) and the External Action Guarantee, for the period of the 2021-2027 MFF.

It lays down the objectives of the Instrument, the budget for the period from 2021 to 2027, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘country indicative programme’ means an indicative programme covering one country;

(2) ‘multi-country indicative programme’ means an indicative programme covering more than one country;

(3) ‘regional indicative programme’ means a multi-country indicative programme covering more than one third country within the same geographic area as established in Article 4(2);

(4) ‘trans-regional indicative programme’ means a multi-country indicative programme covering more than one third country from different geographic areas as established in Article 4(2);

(5) ‘cross-border cooperation’ means cooperation between one or more Member States, and one or more third countries and territories along the external adjacent land and maritime borders of the Union and shall be understood to cover also transnational cooperation over larger transnational territories or around sea basins and interregional cooperation as laid down in a Regulation of the European Parliament and of the Council on specific provisions for the European territorial cooperation goal (Interreg) supported by the European Regional Development Fund and external financing instruments (the ‘Interreg Regulation’);

(6) ‘legal entity’ means a natural person, or a legal person created and recognised as such under Union, national or international law, which has legal personality and the capacity to act in its own name, exercise rights and be subject to obligations, or an entity which does not have legal personality as referred to in point (c) of Article 197(2) of the Financial Regulation;

(7) ‘civil society organisation’ means a wide range of actors with multiple roles and mandates, which may vary over time and across institutions and countries, and includes all non-State, not-for-profit independent and non-violent structures, through which people organise the pursuit of shared objectives and ideals, including political, cultural, religious, environmental, social or economic, and which operate at local, national, regional or international levels, and which comprise urban and rural, formal and informal organisations;

(8) ‘local authority’ encompasses public institutions with legal personality, which are components of the State structure, below the level of central government, such as villages, municipalities, districts, counties, provinces or regions, which are accountable to citizens and usually composed of a deliberative or policy-making body, such as a council or assembly, and an executive body, such as a mayor or other executive officer, which are directly or indirectly elected or selected at local level;

(9) ‘investment window’ means a targeted area for support by the External Action Guarantee under the EFSD+ to portfolios of investments in specific regions, countries or sectors;

(10) ‘additionality’ means the principle based on Article 209(2) of the Financial Regulation, according to which, in the context of this Regulation and the IPA III Regulation, the External Action Guarantee support under the EFSD+ contributes to sustainable development by operations which could not have been carried out without that Guarantee, or which achieve positive results above and beyond what could have been achieved without it. The principle of additionality also means that the operations supported by the External Action Guarantee crowd in private sector funding and address market failures or sub-optimal investment situations as well as improve the quality, sustainability, impact or scale of an investment. The principle also ensures that External Action Guarantee operations do not replace the support of a Member State, private funding or another Union or international financial intervention, and avoid crowding out other public or private investments unless duly justified in accordance with the objectives and principles of the Instrument. Projects supported by the External Action Guarantee typically have a higher risk profile than the portfolio of investments supported by the eligible counterparts under their normal investment policies without the External Action Guarantee;

(11) ‘operation with sovereign counterparts and non-commercial sub-sovereign counterparts’ means any operation where the counterpart is either directly a State or a public entity fully backed by an explicit guarantee of the State because it does not have the legal capacity or the financial autonomy or ability to benefit from necessary direct financing;

(12) ‘operation with commercial sub-sovereign counterparts’ means any operation where the counterpart is a public entity which is not backed by an explicit guarantee of a State and that is financially able to borrow at its own risk and has the legal capacity to do so;

(13) ‘contributor’ means an international finance institution, a Member State or a public institution of a Member State, a public agency or other public or private entity contributing to the common provisioning fund;

(14) ‘partner country’ means a country or territory that may benefit from Union support under the Instrument pursuant to Article 4.

For the purposes of this Regulation, where reference is made to human rights, it shall be understood to include fundamental freedoms.

Article 3

Objectives of the Instrument

The general objectives of the Instrument are to:

(a) uphold and promote the Union’s values, principles and fundamental interests worldwide, in order to pursue the objectives and principles of the Union’s external action, as laid down in Article 3(5) and Articles 8 and 21 TEU, thus contributing to the reduction and, in the long term, the eradication of poverty, to consolidating, supporting and promoting democracy, the rule of law and respect for human rights, sustainable development and the fight against climate change and addressing irregular migration and forced displacement, including their root causes;

(b) contribute to the promotion of multilateralism, the achievement of the international commitments and objectives that the Union has agreed to, in particular the SDGs, the 2030 Agenda and the Paris Agreement;

(c) promote stronger partnerships with third countries, including with the European Neighbourhood Policy countries based on mutual interests and ownership with a view to fostering stabilisation, good governance and building resilience.

The specific objectives of the Instrument are:

(a) to support and foster dialogue and cooperation with third countries and regions in the Neighbourhood, in Sub-Saharan Africa, in Asia and the Pacific, and in the Americas and the Caribbean;

(b) to develop special strengthened partnerships and enhanced political cooperation with the European Neighbourhood Policy countries, founded on cooperation, peace and stability and a shared commitment to the universal values of democracy, the rule of law and respect for human rights, and aiming towards deep and sustainable democracy and progressive socio-economic integration as well as people-to-people contacts;

(c) at global level: (i) to protect, promote and advance democracy, the rule of law, including accountability mechanisms, and human rights, including gender equality and the protection of human rights defenders, including in the most difficult circumstances and urgent situations; (ii) to support civil society organisations; (iii) to further stability and peace and prevent conflict, thereby contributing to the protection of civilians; and (iv) to address other global challenges such as climate change, the protection of biodiversity and the environment, as well as migration and mobility;

(d) to respond rapidly to: (i) situations of crisis, instability and conflict, including those which may result from migratory flows and forced displacement, and hybrid threats; (ii) resilience challenges, including natural and man-made disasters, and linking of humanitarian aid and development action; and (iii) Union foreign policy needs and priorities.

Article 4

Scope and structure

Union funding under the Instrument shall be implemented through:

(a) geographic programmes;

(b) thematic programmes;

(c) rapid response actions.

The geographic programmes shall encompass country and multi-country cooperation in the following areas:

(a) Neighbourhood;

(b) Sub-Saharan Africa;

(c) Asia and the Pacific;

(d) Americas and the Caribbean.

Geographic programmes may cover all third countries, except for candidates and potential candidates as defined in the IPA III Regulation and overseas countries and territories.

Geographic programmes of a continental or trans-regional scope may also be established, in particular a pan-African programme covering African countries under points (a) and (b) of the first subparagraph and a programme covering African, Caribbean and Pacific countries under points (b), (c) and (d) of the first subparagraph.

Geographic programmes in the Neighbourhood area may cover any country or territory listed in Annex I.

In order to attain the objectives of the Instrument, geographic programmes shall be based on the areas of cooperation set out in Annex II.

The thematic programmes shall encompass actions linked to the pursuit of the SDGs at global level, in the following areas:

(a) Human Rights and Democracy;

(b) Civil Society Organisations;

(c) Peace, Stability and Conflict Prevention;

(d) Global Challenges.

Thematic programmes may cover all third countries as well as overseas countries and territories.

In order to attain the objectives of the Instrument, thematic programmes shall be based on the areas of intervention set out in Annex III.

The rapid response actions shall enable early action to:

(a) contribute to peace, stability and conflict prevention in situations of urgency, emerging crisis, crisis and post-crisis, including those which may result from migratory flows and forced displacement;

(b) contribute to strengthening the resilience of states, societies, communities and individuals and to linking humanitarian aid and development action and, where relevant, peacebuilding;

(c) address Union foreign policy needs and priorities.

Rapid response actions may cover all third countries as well as overseas countries and territories.

In order to attain the objectives of the Instrument, rapid response actions shall be based on the areas of intervention set out in Annex IV.

Actions under the Instrument shall be implemented primarily through geographic programmes.

Actions implemented through thematic programmes shall be complementary to actions funded under geographic programmes and shall support global and trans-regional initiatives aimed towards achieving internationally agreed goals, in particular the SDGs and the Paris Agreement, as well as protecting global public goods or addressing global challenges. Actions implemented through thematic programmes may also be undertaken where:

(a) there is no geographic programme;

(b) the geographic programme has been suspended;

(c) there is no agreement on the action with the partner country concerned; or

(d) the action cannot be adequately addressed by geographic programmes.

Rapid response actions shall be complementary to geographic and thematic programmes. Rapid response actions shall be designed and implemented to enable, where relevant, their continuity under geographic or thematic programmes.

The Commission is empowered to adopt a delegated act in accordance with Article 44 by 31 December 2021, to supplement this Regulation with provisions setting out:

(a) specific objectives and priority areas of cooperation drawn from the areas of cooperation for the geographic programmes in Annex II, including a prioritisation, for the following sub-regions: Neighbourhood South, Neighbourhood East, West Africa, East and Central Africa, Southern Africa and Indian Ocean, Middle East, Central Asia, South Asia, North and South East Asia, the Pacific, the Americas and the Caribbean;

(b) indicative thematic targets for the geographic pillar; and

(c) indicative financial allocations for West Africa, East and Central Africa, Southern Africa and Indian Ocean sub-regions.

The delegated act referred to in the first subparagraph of this paragraph shall be reviewed at the mid-term evaluation referred to in Article 42(2).

Article 5

Consistency, coherence, synergies and complementarity

For that purpose, the Union shall take into account the impact of all internal and external policies on sustainable development and shall seek to promote increased synergies and complementarities in particular with trade policy, economic cooperation and other sectorial cooperation.

Article 6

Budget

The financial envelope referred to in paragraph 1 shall be composed of:

(a) EUR 60 388 000 000 for geographic programmes: — Neighbourhood: at least EUR 19 323 000 000 , — Sub-Saharan Africa: at least EUR 29 181 000 000 , — Asia and the Pacific: EUR 8 489 000 000 , — Americas and the Caribbean: EUR 3 395 000 000 ;

(b) EUR 6 358 000 000 for thematic programmes: — Human Rights and Democracy: EUR 1 362 000 000 , — Civil Society Organisations: EUR 1 362 000 000 , — Peace, Stability and Conflict Prevention: EUR 908 000 000 , — Global Challenges: EUR 2 726 000 000 ;

(c) EUR 3 182 000 000 for rapid response actions.

Article 7

Policy framework

The association agreements, partnership and cooperation agreements, multilateral agreements to which the Union is a party, and other agreements that establish a legally binding relationship between the Union and partner countries as well as European Council conclusions, Council conclusions, summit declarations or conclusions of meetings with partner countries at the level of heads of state or government or ministers, European Parliament resolutions, communications of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’) shall constitute the overall policy framework for the implementation of the Instrument.

Article 8

General principles

The Union shall promote a multilateral and rules-based and values-based approach to global goods and challenges and shall cooperate with Member States, partner countries, international organisations and other donors in that respect.

The Union shall promote effective multilateralism in fostering cooperation with international organisations and other donors.

The Union shall take into account and take up in the regular political dialogue with partner countries their track record in implementing obligations and commitments, including the 2030 Agenda, international human rights conventions, and other conventions, including those on nuclear safety standards, international agreements, in particular the Paris Agreement, and contractual relations with the Union, in particular association agreements, partnership and cooperation agreements and trade agreements.

In line with the principle of inclusive partnership and transparency, where appropriate, the Commission shall ensure that relevant stakeholders of partner countries, including civil society organisations and local authorities, are duly consulted and have timely access to relevant information allowing them to be adequately involved and play a meaningful role in the design, implementation and associated monitoring processes of programmes. Where appropriate, the Commission shall also ensure that an enhanced dialogue is pursued with the private sector.

In line with the principle of ownership, the Commission, where appropriate, shall favour the use of partner countries’ institutions and systems for the implementation of programmes.

The Union and the Member States shall coordinate their respective support programmes with the aim of increasing effectiveness and efficiency.

The Union shall foster inclusiveness in the implementation of the Instrument and collaboration with Member States, seeking to maximise added value and taking into account experience and capacities, thus reinforcing shared interests, values and common goals. The Union shall encourage the exchange of best practices and knowledge sharing among Member States’ bodies and experts.

Such actions shall be based on regular and robust conflict analysis to ensure conflict sensitivity and to implement a security sector reform approach that contributes to democratic governance, accountability and human security, including benefits for the local population. Those measures shall be embedded, where relevant, in the context of longer term assistance aimed at reforming the security sector.

Article 9

Capacity building of military actors in support of development and security for development

Assistance pursuant to this Article shall be provided only:

(a) where requirements cannot be met by recourse to non-military actors to adequately reach Union objectives under the Instrument and there is a threat to the existence of functioning State institutions or to the protection of human rights and fundamental freedoms and State institutions cannot cope with that threat; and

(b) where a consensus exists between the partner country concerned and the Union that military actors are key for preserving, establishing or re-establishing the conditions essential for sustainable development, including in crises and fragile or destabilised contexts and situations.

Union assistance pursuant to this Article shall not be used to finance capacity building of military actors for purposes other than the delivery of development activities and security for development activities. In particular, it shall not be used to finance any of the following:

(a) recurrent military expenditure;

(b) the procurement of arms and ammunition, or any other equipment designed to deliver lethal force;

(c) training which is designed to contribute specifically to the fighting capacity of the armed forces.

TITLE II

IMPLEMENTATION OF THE INSTRUMENT

CHAPTER I

Programming

Article 10

Scope of the geographic programmes

In order to attain the objectives of the Instrument geographic programmes shall be drawn up from the following areas of cooperation:

(a) good governance, democracy, the rule of law and human rights, including gender equality;

(b) eradicating poverty, fighting against inequalities and discrimination, and promoting human development;

(c) migration, forced displacement and mobility;

(d) environment and climate change;

(e) inclusive and sustainable economic growth and decent employment;

(f) peace, stability and conflict prevention;

(g) partnership.

Article 11

Scope of the thematic programmes

In order to attain the objectives of the Instrument, thematic programmes shall cover the following areas of intervention:

(a) Human Rights and Democracy: advancing: (i) the fundamental values of democracy; (ii) the rule of law; (iii) the universality, indivisibility and interdependence of human rights; (iv) respect for human dignity; (v) the principles of non-discrimination, equality and solidarity; (vi) respect for the principles of the Charter of the UN and international human rights law;

(b) Civil Society Organisations: (i) inclusive, participatory, empowered and independent civil society and democratic space in partner countries; (ii) inclusive and open dialogue with and between civil society actors; (iii) awareness, understanding, knowledge and engagement of European citizens regarding development issues;

(c) Peace, Stability and Conflict Prevention: (i) assistance for conflict prevention, peacebuilding and crisis preparedness; (ii) assistance in addressing global and trans-regional threats and emerging threats;

(d) Global Challenges: (i) health; (ii) education; (iii) gender equality and women’s and girls’ empowerment; (iv) children and youth; (v) migration, forced displacement and mobility; (vi) decent work, social protection, inequality and inclusion; (vii) culture; (viii) ensuring a healthy environment and tackling climate change; (ix) sustainable energy; (x) sustainable and inclusive growth, decent jobs and private sector engagement; (xi) food and nutrition security; (xii) strengthen the role of local authorities as actors of development; (xiii) promote inclusive societies and multi-stakeholder initiatives, good economic governance, including fair and inclusive domestic revenue mobilisation; (xiv) support the assessment and documentation of progress in implementing partnership and effectiveness principles.

Article 12

General programming approach

On the basis of Article 7, programming under the Instrument shall be based on the following:

(a) programming documents shall provide a coherent framework for cooperation between the Union and partner countries or regions, consistent with the overall purpose and scope, objectives and principles set out in this Regulation;

(b) when drawing up the programming documents for partner countries and regions in situations of crisis, post-crisis or fragility and vulnerability a conflict analysis shall be conducted to ensure conflict sensitivity and due account shall be taken of the special needs and circumstances of the partner countries or regions concerned and of their population; where partner countries or regions are directly involved in, or affected by a situation of crisis, post-crisis or fragility, special emphasis shall be placed on stepping up coordination amongst all relevant actors to help with the transition from an emergency situation to sustainable development and stable peace, including the prevention of violence;

(c) the Union and the Member States shall ensure inclusive consultations with each other at an early stage of and throughout the programming process in order to promote coherence, complementarity and consistency among their cooperation activities; joint programming shall be the preferred approach for country programming and its implementation shall be flexible, inclusive and driven at country level. Joint programming shall be open to other relevant donors and actors if the Union and the Member States consider this to be relevant; in addition, the Union and the Member States shall, whenever appropriate, seek to support partner countries through joint implementation;

(d) the Union shall at an early stage of and throughout the programming process encourage a regular multi-stakeholder and inclusive dialogue with other donors and actors, including local authorities, representatives of civil society, foundations and the private sector, where relevant, in order to facilitate their respective contributions, as appropriate, and to ensure they play a meaningful role in the programming process;

(e) the Human Rights and Democracy thematic programme and the Civil Society Organisations thematic programme referred to in points (a) and (b) of Article 4(3), respectively, shall provide assistance independently of the consent of governments and other public authorities of the third countries concerned; these thematic programmes shall mainly support civil society actors at all levels, taking into account forms and methods of implementation, as referred to in Article 27(3).

The European Parliament and the Council shall be informed about the outcome of the consultations envisaged under points (c) and (d) of the first subparagraph.

Article 13

Programming principles for geographic programmes

Programming of geographic programmes shall be based on the following principles:

(a) without prejudice to paragraph 5, actions shall be based, to the extent possible, on an early, continuous and inclusive dialogue between the Union, Member States and the partner countries concerned, including national, regional and local authorities, involving civil society organisations, national, regional and local parliaments and other stakeholders, in order to enhance democratic ownership of the process and to encourage support for national and regional strategies;

(b) where appropriate, the programming period shall be synchronised and aligned with the strategy cycles of partner countries;

(c) programming may envisage cooperation activities funded from different allocations set out in Article 6(2) and from other Union programmes according to their basic acts.

Programming of geographic programmes shall provide a specific, tailor-made framework for cooperation based on:

(a) the partners’ needs, established on the basis of specific criteria, taking into account the population, poverty, inequality, human development, economic and environmental vulnerability, and state and societal resilience and the impact of protracted and recurrent crises;

(b) the partners’ capacity and commitment to promote shared values, principles and interests, including human rights, fundamental freedoms, democracy, the rule of law, good governance, fight against corruption, open civic space and gender equality and to support common goals and multilateral alliances and cooperation, a rules-based international system, as well as the advancement of Union priorities;

(c) the partners’ commitments, including those jointly agreed with the Union, and performance established on the basis of criteria such as political reform; and economic and social development, environmental sustainability, and the effective use of aid, taking into account the specificities and development level of partner countries;

(d) the potential impact of Union funding in partner countries and regions;

(e) the partners’ capacities to mobilise and make effective use of domestic resources as well as to access financial resources, to manage resources transparently in support of national development priorities and their absorption capacities.

Article 14

Programming documents for geographic programmes

The multiannual indicative programmes shall be built on:

(a) a national or regional strategy in the form of a development plan or a similar document accepted by the Commission as a basis for the corresponding multiannual indicative programme, at the time of adoption of the latter document;

(b) a framework document laying down the Union policy towards the partner or partners concerned, including a joint document between the Union and Member States;

(c) a joint document between the Union and the partner or partners concerned setting out common priorities and mutual commitments.

Article 15

Programming documents for thematic programmes

Where applicable, resources and intervention priorities shall be laid down for participation in global initiatives.

Article 16

Adoption and amendment of multiannual indicative programmes

Article 17

Emerging challenges and priorities cushion

The amount referred to in Article 6(3) shall be used where most needed and duly justified, inter alia:

(a) to ensure an appropriate response of the Union in the event of unforeseen circumstances;

(b) to address new needs or emerging challenges, such as those at the Union’s or its neighbours’ borders linked to crisis, whether natural or man-made, violent conflict and post-crisis situations or migratory pressure and forced displacement;

(c) to promote new Union led or international initiatives or priorities.

CHAPTER II

Specific provisions for the Neighbourhood area

Article 18

Specific objectives for the Neighbourhood area

In accordance with Articles 3 and 4, the specific objectives of Union support under the Instrument for the Neighbourhood area are to:

(a) promote enhanced political cooperation and strengthen and consolidate deep and sustainable democracy, stability, good governance, the rule of law and the respect for human rights;

(b) support the implementation of association agreements or other existing and future agreements, and jointly agreed association agendas and partnership priorities or equivalent documents, including through institutional cooperation and capacity building;

(c) promote a strengthened partnership with societies between the Union and the partner countries, and among the partner countries, including through people-to-people contacts and a wide range of activities with a specific focus on youth;

(d) enhance regional and cross-border cooperation, in particular in the framework of the Eastern Partnership, the Union for the Mediterranean, European Neighbourhood-wide collaboration as well as Black Sea regional cooperation, Arctic cooperation, the Northern Dimension, including in the areas of energy and security;

(e) achieve progressive integration into the Union internal market and enhanced sectoral and cross-sectoral cooperation, including through legislative approximation and regulatory convergence towards Union and other relevant international norms and standards, and improved market access, including through deep and comprehensive free trade areas, related institution building and investment;

(f) strengthen partnerships on well-managed and safe migration and mobility and, where applicable and provided that conditions for well-managed and secure mobility are in place, support the implementation of existing visa-free regimes, in line with the revised visa suspension mechanism, visa liberalisation dialogues and bilateral or regional agreements and arrangements with third countries, including mobility partnerships;

(g) support confidence-building and other measures contributing to security, the prevention and settlement of conflicts, including support to affected populations and reconstruction.

Article 19

Programming documents and allocation criteria

By way of derogation from Article 13(2) and (3), Union support under geographic programmes in the Neighbourhood area shall be differentiated in form and in amounts, taking into account the partner country’s:

(a) needs, using indicators such as population, inequalities and level of development;

(b) commitment to and progress in implementing jointly agreed political, economic, environmental and social reform objectives;

(c) commitment to and progress in building deep and sustainable democracy, the rule of law, good governance, human rights, and the fight against corruption;

(d) partnership with the Union, including the level of ambition for that partnership;

(e) absorption capacity and potential impact of Union support under the Instrument.

Article 20

Incentive-based approach

Article 21

Multi-country indicative programmes

Multi-country indicative programmes in the Neighbourhood area shall address challenges common to all or a number of partner countries, based on priorities of the Eastern Partnership and the southern dimension of the reviewed European Neighbourhood Policy and taking into account the work carried out in the context of the Union for the Mediterranean, and regional, trans-regional and sub-regional cooperation, primarily between two or more partner countries, including also within the framework of the Northern Dimension and Black Sea Synergy regional cooperation.

Article 22

Cross-border Cooperation

CHAPTER III

Action plans, measures and implementing methods

Article 23

Action plans and measures

An exceptional assistance measure may have a duration of up to 18 months, which may be extended twice by a further period of up to six months, up to a total maximum duration of 30 months, in the event of objective and unforeseen obstacles to its implementation, provided that there is no increase in the financial amount of the measure.

In cases of protracted crisis and conflict, the Commission may adopt a second exceptional assistance measure of a duration of up to 18 months. In duly justified cases, further measures may be adopted where the continuity of the Union’s action is essential and cannot be ensured by other means.

Article 24

Support measures

Where support expenditure is not included in the action plans or measures referred to in Article 23, the Commission shall adopt support measures, where applicable. Union financing under support measures may cover:

(a) studies, meetings, information, awareness-raising, training, preparation and exchange of lessons learnt and best practices, publication activities and any other administrative or technical assistance expenditure necessary for the programming and management of actions, including remunerated external experts;

(b) research and innovation activities and studies on relevant issues and the dissemination thereof;

(c) expenditure related to the provision of information and communication actions, including the development of communication strategies and corporate communication and visibility of the political priorities of the Union.

Article 25

Adoption of action plans and measures

The procedure referred to in paragraph 1 shall not be required for:

(a) individual measures for which the Union’s funding does not exceed EUR 5 000 000 ;

(b) special and support measures as well as action plans adopted in order to implement rapid response actions for which the Union’s funding does not exceed EUR 10 000 000 ;

(c) exceptional assistance measures referred to in Article 23(6) for which the Union’s funding does not exceed EUR 20 000 000 ;

(d) technical amendments to action plans and measures, provided such amendments do not substantially affect the objectives of the action plan or measure concerned, such as: (i) change of method of implementation; (ii) extensions of the implementation period; (iii) reassignments of funds between actions contained in an action plan; (iv) increases or reductions of the budget of action plans and measures by not more than 20 % of the initial budget and not exceeding EUR 10 000 000 .

In case of multiannual action plans and measures, the thresholds referred to in points (a), (b) and (c) and point (d)(iv) of the first subparagraph of paragraph 2 shall be applicable on a yearly basis.

When adopted in accordance with this paragraph, action plans and measures, except exceptional assistance measures, and technical amendments shall be communicated to the European Parliament and to the Member States through the relevant committee referred to in Article 45 within one month of their adoption.

Other appropriate ex ante assessments which are proportionate to the objectives and amounts of the envisaged actions and measures shall be carried out, to determine the possible implications and risks of those actions and measures with regard to human rights, access to natural resources such as land, and social standards including in the form of impact assessments for major actions and measures that are expected to have a significant impact on those areas.

Where relevant, strategic environmental assessments, including the impact on climate change, shall be used in the implementation of sectoral programmes. The involvement of interested stakeholders in environmental assessments and public access to the results of such assessments shall be ensured.

Article 26

Methods of cooperation

Cooperation between the Union and its partners may take the form of, for example:

(a) triangular arrangements whereby the Union coordinates with third countries its assistance funding to a partner country or region;

(b) administrative and technical cooperation measures, as well as building capacity, including to share transitional or reform implementation experiences of Member States, such as decentralised cooperation through partnerships or twinning, between public institutions, including local authorities, public law bodies or private law entities entrusted with public service tasks of a Member State and those of a partner country or region, as well as cooperation measures involving public sector experts dispatched from the Member States and their regional and local authorities;

(c) contributions to the necessary costs of setting up and administering a public-private partnership, including those for their independent assessment and monitoring, where possible by civil society organisations;

(d) sector policy support programmes whereby the Union provides support to a partner country’s sector programme;

(e) contributions to the cost of the countries’ participation in Union programmes, and to actions implemented by Union agencies and bodies, as well as to bodies or persons entrusted with the implementation of specific actions in the Common Foreign and Security Policy pursuant to Title V TEU.

Article 27

Forms of Union funding

Union funding may be provided through the types of financing envisaged by the Financial Regulation and in particular:

(a) grants;

(b) procurement contracts for services, supplies or works;

(c) budget support;

(d) contributions to trust funds set up by the Commission, in accordance with Article 234 of the Financial Regulation;

(e) financial instruments;

(f) budgetary guarantees;

(g) blending operations;

(h) debt relief in the context of internationally agreed debt relief programme;

(i) financial assistance;

(j) remunerated external experts.

In addition to the cases referred to in Article 195 of the Financial Regulation, the direct award procedure may be used for:

(a) low-value grants to human rights defenders to finance urgent protection actions and needs, including through mechanisms for the protection of human rights defenders at risk, as well as to mediators and other civil society actors involved in crisis and armed conflict related dialogue, conflict resolution, reconciliation and peacebuilding, where appropriate without the need for co-financing;

(b) grants, where appropriate without the need for co-financing, to finance actions in the most difficult conditions where the publication of a call for proposals would be inappropriate, including situations where there is a serious lack of fundamental freedoms, including violation of human rights, threats to democratic institutions, escalation of crisis or armed conflict, where human security is most at risk or where human rights organisations and defenders, mediators and other civil society actors involved in crisis and armed conflict related dialogue, reconciliation and peacebuilding operate under the most difficult conditions; such grants shall not exceed EUR 1 000 000 and their duration shall not exceed 18 months, which may be extended by a further 12 months in the event of objective and unforeseen obstacles to their implementation;

(c) grants to the Office of the UN High Commissioner for Human Rights as well as to Global Campus of Human Rights, the European Inter-University Centre for Human Rights and Democratisation, providing a European Master’s Degree in Human Rights and Democratisation, and its associated network of universities delivering human rights postgraduate diplomas, including scholarships to students and human rights defenders from third countries;

(d) low value grants to civil society organisations using, to the extent possible, simplified forms of financing in accordance with Article 125 of the Financial Regulation.

Budget support, including through sector reform performance contracts, shall be based on country ownership, mutual accountability and the commitment of partner countries, taking into account their record and progress with regard to universal values, democracy, human rights and the rule of law, and aims to strengthen partnerships between the Union and partner countries. It shall include reinforced policy dialogue, capacity building and improved governance, complementing partners’ efforts to collect more and to spend better in order to support sustainable, inclusive growth and decent job creation, including for young people, poverty eradication, inequality reduction, and to build and consolidate democracies and peaceful societies. Budget support shall also contribute to gender equality.

Any decision to provide budget support shall be based on budget support policies agreed by the Union, a clear set of eligibility criteria and a careful assessment of the risks and benefits.

When providing budget support in accordance with Article 236 of the Financial Regulation, the Commission shall clearly define and monitor criteria for budget support conditionality, including progress in reforms and transparency, and shall support the development of parliamentary control, national audit capacities and increased transparency and public access to information.

Contributions to financial instruments under the Instrument may be made by Member States as well as any entity referred to in point (c) of Article 62(1) of the Financial Regulation.

Article 28

Eligible persons and entities

Participation in procurement, grant and prize award procedures for actions financed under geographic programmes and under the Civil Society Organisations thematic programme and the Global Challenges thematic programme shall be open to international organisations and to all other legal entities, including civil society organisations, who are nationals of and, in the case of legal persons, who are also effectively established in, the following countries:

(a) Member States, beneficiaries listed in the relevant Annex to the IPA III Regulation and contracting parties to the Agreement on the European Economic Area;

(b) Neighbourhood partner countries and the Russian Federation when the relevant procedure takes place in the context of the programmes referred to in Annex I in which it participates;

(c) developing countries and territories, as included in the list of ODA recipients published by the OECD Development Assistance Committee, which are not members of the G-20 group, and overseas countries and territories;

(d) developing countries, as included in the list of ODA recipients, which are members of the G-20 group, and other countries and territories, when the relevant procedure takes place in the context of an action financed by the Union under the Instrument in which they participate;

(e) countries for which reciprocal access to external funding is established by the Commission; that access may be granted, for a limited period of at least one year, whenever a country grants eligibility on equal terms to entities from the Union and from countries eligible under the Instrument; the Commission shall decide on the reciprocal access and on its duration after consultation of the recipient country or countries concerned;

(f) member countries of the OECD, in the case of contracts implemented in a LDC or a highly indebted poor country, as included in the list of ODA recipients.

Article 29

Excluded activities

Union funding under the Instrument shall not support actions or measures which:

(a) may result in the violation of human rights in partner countries;

(b) are incompatible with the recipient country’s Nationally Determined Contribution (NDC) under the Paris Agreement, or that promote investments in fossil fuels, or that, according to the environmental screening and impact assessment, cause significant adverse effects on the environment or the climate, unless such actions or measures are strictly necessary to achieve the objectives of the Instrument and they are accompanied with appropriate measures to avoid, prevent or reduce and, if possible, off-set these effects, including support to phase out environmentally harmful fossil fuel subsidies.

Article 30

Carry-overs, annual instalments, commitment appropriations, re-payments and revenue generated by financial instruments and budgetary guarantees

The Commission shall inform the European Parliament and the Council of commitment appropriations carried-over in accordance with Article 12(6) of the Financial Regulation.

The third subparagraph of Article 114(2) of the Financial Regulation shall not apply to the multiannual actions referred to in the first subparagraph of this paragraph. The Commission shall automatically decommit any portion of a budgetary commitment for an action which, by 31 December of the fifth year following that of the budgetary commitment, has not been used for the purpose of pre-financing or making interim payments, or for which no certified statement of expenditure or any payment request has been submitted.

Paragraph 2 of this Article shall also apply to annual instalments.

CHAPTER IV

EFSD+, the External Action Guarantee, budgetary guarantees and financial assistance to third countries

Article 31

Scope and financing

The EFSD+ shall in particular foster sustainable and inclusive economic, environmental and social development, transition into sustainable value-added economy and a stable investment environment. It shall also promote socio-economic and environmental resilience in partner countries with a particular focus on the eradication of poverty. The EFSD+ shall thus contribute to the reduction of socio-economic inequalities, sustainable and inclusive growth, climate change adaptation and mitigation, environmental protection and management, the creation of decent jobs on the basis of the core ILO labour standards, economic opportunities, skills and entrepreneurship, socio-economic sectors, including social enterprises and cooperatives, SMEs, sustainable connectivity, the support to vulnerable groups, the promotion of human rights, gender equality and the empowerment of women and young people, as well as addressing specific socio-economic root causes of irregular migration and root causes of forced displacement, in accordance with the priority areas outlined in Annex V and relevant indicative programming documents.

Special attention shall be given to countries identified as experiencing fragility or conflict, LDCs and heavily indebted poor countries, including by providing support for institutional capacity building, economic governance and technical assistance.

The Commission is empowered to adopt a delegated act in accordance with Article 44 to amend the maximum amount of the External Action Guarantee by up to 20 %.

A maximum amount of EUR 10 000 000 000 from the Union budget may be used to provision the External Action Guarantee. The Commission is empowered to adopt delegated acts in accordance with Article 44 to amend this maximum amount to ensure that the provisioning amount reflects the amount and the provisioning rates of the External Action Guarantee, taking into account the type of guaranteed operations.

The provisioning rate for the External Action Guarantee shall be 9 % for the Union’s macro-financial assistance and for budgetary guarantees covering sovereign risks associated with lending operations.

The provisioning rates shall be reviewed at least every three years from the date of application of this Regulation laid down in Article 51. The Commission is empowered to adopt delegated acts in accordance with Article 44 to amend the provisioning rates.

Article 32

Structure of the EFSD+

Article 33

The EFSD+ strategic board

The EFSD+ strategic board shall regularly organise a consultation of relevant stakeholders on the strategic orientation and implementation of the EFSD+.

Article 34

Regional operational boards

The operational boards of regional investment platforms, taking into account the advice of the strategic board concerned and relevant risk assessments, shall support the Commission at the implementation level in defining regional and sectoral investment goals and regional, sectoral, and thematic investment windows and shall formulate opinions on blending operations and on the use of the External Action Guarantee covering EFSD+ proposed investment programmes.

Article 35

Eligibility and selection of operations and counterparts for the External Action Guarantee under the EFSD+

The External Action Guarantee shall support financing and investment operations which comply with the conditions set out in points (a) to (e) of Article 209(2) of the Financial Regulation concerning in particular the need to achieve additionality, including by addressing market failures or sub-optimal investment situations, alignment of interest of the eligible counterparts, avoiding the distortion of competition, and, where appropriate, maximising private investment, and which:

(a) undergo, in line with Article 34 of the Financial Regulation, ex ante evaluations which shall be proportionate to the objectives and amounts of the envisaged operations to determine the possible implications and risks of these operations with regard to human rights, environmental, labour and social standards including in the form of impact assessments for major programmes that are expected to have a significant impact on these areas, in line with the purpose of the EFSD+ laid down in Article 31(2) of this Regulation and taking due account of the principle of free and prior informed consent of affected communities in land related investments;

(b) ensure complementarity within the different pillars of the External Investment Plan as well as with other initiatives;

(c) are economically and financially viable, with due regard to the possible support from, and co-financing by, private and public partners to the project, while taking into account the specific operating environment and capacities of countries identified as experiencing fragility or conflict, LDCs, small island developing states, landlocked developing countries and heavily indebted poor countries which may benefit from more concessional terms;

(d) are technically viable and are sustainable from an environmental and social point of view and maximise development impact;

(e) do not distort markets in partner countries and regions and do not compete unfairly with local actors;

(f) are implemented in accordance with the policy framework referred to in Article 7, applicable environmental, social and labour law obligations and standards and internationally agreed guidelines, principles and conventions on investments, in particular those adopted by the UN and the OECD, with full respect for international human rights law as well as in accordance with the objectives and general principles laid down in Articles 3 and 8.

The External Action Guarantee shall be used to cover the risks for the following instruments:

(a) loans, including local currency loans;

(b) guarantees;

(c) counter-guarantees;

(d) capital market instruments;

(e) any other form of funding or credit enhancement, insurance, and equity or quasi-equity participations.

The Commission shall ensure the effective, efficient and fair use of available resources among eligible counterparts, including small and medium-sized counterparts, while promoting cooperation between them and taking due account of their capacities, added value and experience.

The Commission shall ensure fair treatment for all eligible counterparts, in accordance with Article 27(7), and shall ensure that conflicts of interest are avoided throughout the implementation period of the EFSD+. In order to ensure complementarity, the Commission may request any relevant information from eligible counterparts about their non-EFSD+ operations.

The Commission shall select the eligible counterparts in accordance with Article 154 of the Financial Regulation, taking due account of:

(a) the advice of the strategic and regional operational boards;

(b) the objectives of the investment window;

(c) the experience and risk management capacity of the eligible counterpart;

(d) the amount of own and additional resources, as well as private sector co-financing, that the eligible counterpart is ready to mobilise for the investment window taking in due account the size of the investment;

(e) the sectoral or geographic expertise of the eligible counterparts;

(f) the benefits of promoting collaboration between eligible counterparts.

The choice of investment windows shall be duly justified by an analysis of the market failure or sub-optimal investment situations and an assessment of its alignment with the priorities of this Regulation and, where relevant, the IPA III Regulation. The Commission shall carry out that analysis in cooperation with potentially eligible counterparts and stakeholders.

Eligible counterparts may provide the instruments referred to in paragraph 3 under an investment window or individual project administered by an eligible counterpart. Those instruments may be provided for the benefit of partner countries, including countries experiencing fragility or conflict, or countries facing challenges in reconstruction and post-conflict recovery, for the benefit of those partner countries’ institutions, including their public national and private local banks and finance institutions, as well as for the benefit of private sector entities, including SMEs, of those partner countries. Those instruments shall not benefit companies controlled by the military or state security sector, except for duly justified cases.

Article 36

Role of the EIB

The EIB shall have the exclusivity for operations with sovereign counterparts and non-commercial sub-sovereign counterparts under the exclusive dedicated investment window. Under the exclusive dedicated investment window, the own resources contribution shall be understood as the assumption of residual risk and the EU guarantee shall cover 65 % of the aggregate amount disbursed and guaranteed under EIB financing operations, less amounts reimbursed, plus all related amounts.

By way of derogation from the second subparagraph, if the EIB cannot carry out or decides not to carry out operations under the exclusive dedicated investment window, the implementation of these operations shall be open to other eligible counterparts, in accordance with conditions which shall be laid down in the relevant External Action Guarantee agreements, which shall take into account the conditions offered to the EIB for the same type of operations and the specific needs, circumstances and nature of the eligible counterpart implementing these operations.

The EIB shall be eligible for implementing operations with sub-sovereign counterparts not covered under the exclusive dedicated investment window referred to in paragraph 1 and operations with the private sector. The procedure referred to in Article 35 shall be used to entrust the EIB, if appropriate, with two additional dedicated investment windows covering:

(a) a non-exclusive comprehensive risk cover for operations with commercial sub-sovereign counterparts; and

(b) non-exclusive operations for the promotion of foreign direct investment, trade and the internationalisation of partner countries’ economies, providing a political risk cover for private sector operations.

In implementing the dedicated investment windows referred to in paragraphs 1 and 2, the EIB shall comply with this Regulation, including its overall objectives and those of the EFSD+ and, where relevant, of the IPA III Regulation, as well as with the relevant programming documents and the reporting obligations.

The operations under the dedicated investment window referred to in point (b) of paragraph 2 shall be coherent with those of the export credit agencies of Member States.

For EIB operations falling under the investment windows referred to in this Article, the eligibility assessment laid down in Article 35(9) shall be satisfied within the framework of the procedure provided for in Article 19 of Protocol No 5 on the Statute of the European Investment Bank, annexed to the TFEU. The EIB shall, in a timely manner, provide all information required by the Commission for that purpose. The EIB financing operations falling under those investment windows shall not be covered by the EU guarantee where the Commission delivers an unfavourable opinion under the procedure provided for in Article 19 of Protocol No 5 on the Statute of the European Investment Bank, annexed to the TFEU. All further modalities applicable to the EIB shall be established in the relevant External Action Guarantee agreements.

Article 37

Contribution from other donors to the External Action Guarantee

By derogation from the second subparagraph of Article 218(2) of the Financial Regulation, the contracting parties to the Agreement on the European Economic Area may provide contributions either in the form of guarantees or cash.

Third countries other than the contracting parties to the Agreement on the European Economic Area and other third parties shall provide contributions in the form of cash and subject to the opinion of the EFSD+ strategic board and approval by the Commission.

Member States may request that their contributions be earmarked for the initiation of actions in specific regions, countries, sectors or existing investment windows. The Commission shall inform the European Parliament and the Council without delay of the contributions approved

The contributions made by Member States and the contracting parties to the Agreement on the European Economic Area in the form of a guarantee may only be called for payments of guarantee calls after the funding from the general budget of the Union, increased by any other cash contributions, has been used on payments of guarantee calls.

Any contribution may be used to cover guarantee calls regardless of earmarking.

A contribution agreement shall be concluded between the Commission, on behalf of the Union, and the contributor, and shall contain, in particular, provisions concerning the payment conditions.

Article 38

Implementation of External Action Guarantee agreements

The European Parliament and the Council shall be notified of the signature of all External Action Guarantee agreements. Upon their request, those agreements shall be made available to the European Parliament and the Council, taking into account the protection of confidential and commercially sensitive information.

External Action Guarantee agreements shall contain, in particular:

(a) detailed rules on the coverage, requirements, eligibility, eligible counterparts, and procedures;

(b) detailed rules on the provision of the External Action Guarantee, including its arrangements on the coverage and its defined coverage of portfolios and of projects of specific types of instruments, as well as a risk analysis of projects and project portfolios, including at sectoral, regional, and national levels;

(c) a reference to the objectives and purpose of the Instrument, an assessment of the needs and an indication of the expected results, taking into account the promotion of corporate social responsibility and responsible business conduct, including in particular by the respect of internationally agreed guidelines, principles and conventions on investment referred to in point (f) of Article 35(2);

(d) the remuneration of the External Action Guarantee, which is to reflect the risk level, and the possibility for the remuneration to be partly subsidised in order to give more concessional terms in duly justified cases; and, in particular to countries experiencing fragility or conflict, LDCs and heavily indebted poor countries;

(e) requirements for the use of the External Action Guarantee, including payment conditions, such as specific time frames, interest to be paid on due amounts, expenses and recovery costs and possibly necessary liquidity arrangements;

(f) claims procedures, including, but not limited to, triggering events and waiting periods, and procedures regarding the recovery of claims;

(g) monitoring, reporting, transparency and evaluation obligations;

(h) clear and accessible complaints procedures for third parties that could be affected by the implementation of projects supported by the External Action Guarantee.

The External Action Guarantee may cover:

(a) for debt instruments, the principal and all interests and amounts due to the selected eligible counterpart, but not received by it in accordance with the terms of the financing operations after an event of default has occurred;

(b) for equity investments, the amounts invested and their associated financing costs;

(c) for other financing and investment operations referred to in Article 35(2), the amounts used and their associated funding costs;

(d) all relevant expenses and recovery costs related to an event of default, unless deducted from recovery proceeds.

For the purposes of the Commission’s accounting and its reporting of the risks covered by the External Action Guarantee, and in accordance with Article 209(4) of the Financial Regulation, eligible counterparts with which an External Action Guarantee agreement has been concluded shall provide the Commission and the Court of Auditors annually with the financial reports on financing and investment operations covered by this Regulation, audited by an independent external auditor, containing, inter alia, information on:

(a) the risk assessment of financing and investment operations of the eligible counterparts, including information on Union liabilities measured in compliance with the accounting rules referred to in Article 80 of the Financial Regulation and International Public Sector Accounting Standards;

(b) the outstanding financial obligation for the Union arising from the EFSD+ operations provided to the eligible counterparts and their financing and investment operations, broken down by individual operation.

Article 39

Grievance and redress mechanism and protection of Union’s financial interests

Article 40

Capital participation in development finance institutions

The envelope for geographic programmes, referred to in point (a) of Article 6(2), may be used to contribute to the capital endowment of European and other development finance institutions.

CHAPTER V

Monitoring, reporting and evaluation

Article 41

Monitoring and reporting

Progress regarding expected results shall be monitored in a transparent and timely manner, on the basis of relevant, measurable, qualitative and quantitative data including, but not limited to those set out in Annex VI. Whenever possible, indicators shall be disagregated by sex, age and other relevant factors.

The performance reporting system shall ensure that data for monitoring programme implementation and results of the Instrument are collected efficiently, effectively, and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds.

The annual report shall contain:

(a) information relating to the previous year on the measures financed;

(b) the results of monitoring and evaluation exercises;

(c) the involvement and level of cooperation of the relevant partners, broken down by type of entity as referred to in Article 62 of the Financial Regulation for both direct and indirect management;

(d) the budgetary commitments, including contracted amounts, and payment appropriations, broken down by country, region and cooperation sector;

(e) qualitative and quantitative information including on measures taken pursuant to Article 9, on the use of the emerging challenges and priorities cushion referred to in Article 17 and on the use of funds dedicated to the incentive-based approach responding to performance in key areas referred to in Article 20.

The annual report shall assess the results of the Union funding using, as far as possible, specific and measurable indicators to show progress towards the targets and objectives of the Instrument as well as the progress made towards mainstreaming issues referred to in Article 8(8). It shall also present a breakdown on the forms of Union funding as set out in Article 27. In the case of development cooperation, the report shall also assess, where possible and relevant, the adherence to development effectiveness principles, including for innovative financial instruments.

The Commission shall submit as part of the annual report detailed reporting on the financing and investment operations covered by the External Action Guarantee, and the functioning of the EFSD+, its management and its effective contribution to its objectives. It shall include the following elements:

(a) an assessment of the results contributing to the purpose and objectives of the Instrument and, where relevant, other funding instruments as laid down in Article 31(7);

(b) an assessment, on the basis of indicators in accordance with Articles 31(2) and 35(2), of the additionality and added value, the mobilisation of private sector resources including from SMEs, the type of private sector entities supported, the estimated and actual outputs and the outcomes and impact of the financing and investment operations covered by the External Action Guarantee under the EFSD+ on an aggregated basis, including the impact on decent job creation, and the eradication of poverty and on the way in which the specific socio-economic root causes of irregular migration and root causes of forced displacement are addressed; the assessment shall include an analysis of the risk measures and their impact on the financial and economic stability of the partners and a gender analysis of the operations covered based on evidence and data broken down by gender, country and sector where possible;

(c) an assessment of the compliance of the operations supported by the External Action Guarantee under the EFSD+ with the internationally agreed development effectiveness principles;

(d) an assessment of the leverage effect achieved by the operations covered;

(e) an assessment of the synergies and complementarity between operations covered by the External Action Guarantee under the EFSD+, including those referred to in Article 36, and other pillars of the External Investment Plan based on relevant existing reports, with particular regard to progress made on good governance, including in the fight against corruption and illicit financial flows, respect for human rights, the rule of law and gender-responsive policies, as well as the boosting of entrepreneurship, the local business environment and local financial markets;

(f) an assessment of the remuneration of the guarantees and of the implementation of Article 155(2) and (3) of the Financial Regulation;

The Commission shall make available information on development cooperation in accordance with recognised international standards such as those from the ILO and the OECD and by using the framework for a common standard developed by the International Aid Transparency Initiative.

Article 42

Evaluation

The Commission shall communicate the findings and conclusions of the evaluations accompanied by its observations and follow-up, to the European Parliament, to the Council and to the Member States. Evaluations may be discussed at the request of Member States pursuant to Article 45(7). The results shall feed into the preparation of programmes and actions and resource allocation. Those evaluations and follow-up shall be made publicly available.

The Commission shall, to an appropriate extent, associate all relevant stakeholders, including beneficiaries, civil society actors and local authorities in the evaluation process of the Union’s funding provided under the Instrument, and may, where appropriate, seek to undertake joint evaluations with the Member States and other partners with close involvement of the partner countries.

The mid-term and final evaluations shall also contain consolidated information from annual reports on all funding governed by this Regulation, including external assigned revenues and contributions to trust funds, offering a breakdown of spending by beneficiary country, forms of Union funding, and involvement of Member States and relevant partners, commitments and payments, as well as a breakdown per geographic programmes, thematic programmes and rapid response actions, including the use of funds mobilised from the emerging challenges and priorities cushion, as referred to in Article 6.

The mid-term and final evaluations shall be undertaken for the specific purpose of improving Union funding. They shall inform decisions on the renewal, modification or suspension of the types of actions implemented under the Instrument.

TITLE III

FINAL PROVISIONS

Article 43

Extension of geographic scope

Article 44

Exercise of the delegation

Article 45

Committee procedure

Article 46

Information, communication and visibility

Agreements concluded with the recipients of Union funding shall contain obligations in that respect.

Article 47

Derogation from visibility requirements

Where security issues or political sensitivities may make it preferable or necessary to limit communication and visibility activities in certain countries or areas or during certain periods, the target audience and the visibility tools, products and channels to be used in promoting a given action shall be determined on a case-by-case basis, in consultation and agreement with the Union. Where rapid intervention is required in response to a sudden crisis, it is not necessary to produce a full communication and visibility plan immediately. In such situations, however, the Union’s support shall nevertheless be appropriately indicated from the start.

Article 48

European External Action Service clause

This Regulation shall be applied in accordance with Decision 2010/427/EU, in particular Article 9 thereof.

Article 49

Amendments to Decision No 466/2014/EU

Decision No 466/2014/EU is amended as follows:

(1) in Article 1, paragraph 5 is replaced by the following: ‘5. The EU guarantee shall cover EIB financing operations signed during the period from 1 January 2014 to 31 December 2021.’;

(2) in Article 20, the second paragraph is replaced by the following: ‘By 31 December 2022, the Commission shall present to the European Parliament and to the Council a report on the application of this Decision.’;

(3) in Annex I, the last three paragraphs of point D are replaced by the following: ‘Within the overall fixed ceiling, the EIB governing bodies may decide, after consulting the Commission, to reallocate amounts within and between regions.’.

Article 50

Repeal and transitional provisions

Article 51

Entry into force and application

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

ANNEX I

Algeria

Armenia

Azerbaijan

Belarus

Egypt

Georgia

Israel

Jordan

Lebanon

Libya

The Republic of Moldova

Morocco

Occupied Palestinian Territory

Syria

Tunisia

Ukraine

Union support under this area may also be used for the purpose of enabling the Russian Federation to participate in cross-border cooperation programmes and in other relevant multi-country indicative programmes, including as referred to in Article 13(6) and Article 21.

ANNEX II

For all geographic regions

PEOPLE

1. Good governance, democracy, the rule of law and human rights, including gender equality

(a) Strengthening and promoting democracy and inclusive democratic processes, the rule of law, the fight against corruption, governance and oversight, including transparent, inclusive and credible electoral processes as well as transparent, accountable, effective and inclusive institutions at all levels, including legislative bodies, an independent judiciary, strengthening a meaningful political participation and representation;

(b) Strengthening the promotion, protection and fulfilment of human rights and fundamental freedoms in compliance with international human rights law, including the Universal Declaration of Human Rights; supporting and protecting human rights defenders; supporting and monitoring complaint and redress mechanisms with regard to human rights violations and abuses at national and local level; contributing to the implementation of global and regional instruments and frameworks, increasing the capacities of civil society in their implementation and monitoring;

(c) Fighting against discrimination in all its forms, and promoting the principle of equality and non-discrimination, in particular gender equality, rights and empowerment of women and girls, the rights of the child, persons with disabilities, persons belonging to minorities, lesbian, gay, bisexual, trans and intersex (LGBTI) persons, and indigenous peoples as set out in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP);

(d) Supporting, strengthening and empowering a thriving civil society and its independent, active and multiple roles in political transitions, reform processes and democratic transformations, and promoting an open and enabling space for civil society and citizens’ engagement in political life and in scrutiny of decision-making as well as countering the shrinking of democratic space; supporting and promoting the participation of all in political processes and public life;

(e) Improving the pluralism, independence and professionalism of a free and independent media, as well as enhancing media literacy and tackling disinformation; strengthening digital rights, including rights to access information; strengthening the right to privacy and data protection;

(f) Building resilience of states, societies, communities and individuals to political, economic, environmental, food, demographic and societal pressures and shocks, natural and man-made disasters and health crises including pandemics;

(g) Strengthening the development of democratic and inclusive public institutions at international, national and sub-national levels, including local authorities; strengthening the capacity for gender-responsive budgeting and planning; as well as an independent, effective, efficient and accountable judicial system, the promotion of the rule of law, international justice, accountability and affordable access to justice for all;

(h) Supporting public administration reform processes at national and sub-national levels, including through the use of citizen-centred eGovernment systems and other digital solutions for building robust, accountable and transparent public administration and service delivery systems, strengthening legal frameworks and institutional set up, national statistical systems and capacities, including with regard to disaggregating data by income, sex, age and other factors, sound public finance management including external audit, and contributing to the fight against corruption, tax avoidance, tax evasion and aggressive tax planning;

(i) Supporting national and local governments and administrations to create the required infrastructure to enable all civil registrations (from birth through to death) to be accurately registered, and officially recognised, and duplicated documents to be published when necessary in order to ensure that all citizens officially exist and are able to exercise their fundamental rights;

(j) Promoting inclusive, balanced and integrated territorial, rural and urban policies and development through strengthening public institutions and bodies at the national and sub-national levels, supporting capacity building of local authorities and mobilising their expertise to promote a territorial approach to local development including efficient decentralisation, fiscal decentralisation, and state restructuring processes;

(k) Increasing transparency and accountability of public institutions at national and sub-national levels and publicly-owned enterprises and improving access for all to information on public affairs, strengthening public procurement including encouraging the development of environmental, social and economic sustainability criteria and targets and public finance management at regional, national and local level, supporting the development and deployment of eGovernance systems and strengthening service delivery;

(l) Supporting the sustainable, accountable, conflict sensitive and transparent management of natural resource sectors and related revenues, and reforms to ensure fair, just, efficient and sustainable tax policies.

2. Eradicating poverty, fighting against inequalities and discrimination, and promoting human development

(a) Eradicating poverty in all its dimensions, including through public services on health, nutrition, education and social protection, tackling discrimination and inequalities and leaving no one behind;

(b) Supporting sustainable agriculture, forestry and fisheries to increase food security, create economic opportunities and jobs;

(c) Enhancing efforts for the adoption of policies and appropriate investment to promote, protect and fulfil the rights of women and girls, young people and children, and persons with disabilities, to facilitate their engagement and meaningful participation in social, civic and economic life, and to ensure their full contribution to inclusive growth and sustainable development;

(d) Promoting the respect, protection and fulfilment of the rights of women and girls and their empowerment, including economic, labour and social rights, land rights, as well as rights referred to in Article 8(4), eliminating sexual and gender-based violence in all forms, including harmful practices such as early, forced and child marriage and female genital mutilation;

(e) Addressing the linkages of global demographic growth and demographic shifts to sustainable development in all relevant dimensions including gender equality, health, social protection, social cohesion, education and employment;

(f) Paying special attention to those who are disadvantaged, vulnerable and marginalised, including children and youth, older persons, persons with disabilities, LGBTI persons, persons belonging to minorities and indigenous peoples, refugees, internally displaced people, persons affected by armed conflict and stateless persons;

(g) Promoting an integrated approach to supporting communities, particularly the most marginalised, vulnerable, poorest and hardest to reach persons, including by improving universal access to basic needs and services, including in the health, education, nutrition and social protection fields;

(h) Supporting the provision of a safe, nurturing environment for children as an important element for fostering a healthy young population able to reach its full potential. This includes promoting the transition from institutional to community-based care for children. It also includes giving children, particularly the most marginalised, the best start in life by investing in early childhood development and ensuring that children experiencing poverty or inequality have access to basic services such as health, nutrition, education and social protection;

(i) Supporting universal access to sufficient, affordable, safe and nutritious food and healthy diets, particularly for those in the most vulnerable situations, inter alia children under the age of five, adolescents, both girls and boys, and women, especially during pregnancy and breastfeeding, as well as strengthening food and nutrition resilience and the continuum of care, particularly in countries facing protracted or recurrent crises; prevent stunting, wasting and other forms of malnutrition; fostering multi-sectoral, nutrition-sensitive approaches to agriculture;

(j) Supporting universal access to safe and sufficient drinking water sanitation, and hygiene, and sustainable and integrated water management, in particular at local level;

(k) Achieving universal health coverage, with equitable access for all individuals and communities to quality and affordable health services, including sexual and reproductive health care services in the context of the implementation of the Beijing Platform for Action and the Programme of Action of the ICPD and the outcomes of their review conferences, through supporting the building of inclusive strong, quality and resilient health systems that are accessible to all, and enhancing capacity for early warning, risk reduction, management and recovery; complementing action through the Union’s framework programme for research and innovation to tackle global health threats, develop safe, efficient and affordable vaccines, medicines and treatments against poverty-related and neglected diseases, and to improve responses to health challenges including communicable diseases, antimicrobial resistance and emerging diseases and epidemics;

(l) Supporting universal and equitable social protection and strengthening social safety nets, support networks and systems to guarantee basic income, prevent lapses into extreme poverty and build resilience;

(m) Promoting inclusive sustainable urban development to address urban inequality, focusing on those most in need;

(n) Supporting local authorities, including through decentralised cooperation, capacity development and resource mobilisation, to improve in urban and rural areas the localisation of the SDGs through the delivery and responsiveness of basic services and equitable access to food and nutrition security, accessible, decent and affordable housing and the quality of life, in particular for those living in informal settlements and slums, strengthening and promoting accessible participation and complaint mechanisms, especially for disadvantaged and excluded persons and groups;

(o) Promoting the achievement of internationally agreed goals in education, with particular focus on strengthening free education systems, through inclusive and equitable quality formal, informal and non-formal education and promoting life-long learning opportunities for all, and at all levels, particularly during early childhood and primary years, technical and vocational training, also in emergency and crisis situations, and with special attention to women and girls; and including through training and professional development for teachers, and the use of digital technologies to improve education teaching and learning;

(p) Supporting actions of capacity building, learning mobility between the Union and partner countries or between partner countries themselves, as well as of cooperation and policy dialogue with institutions, organisations, local implementing bodies and authorities, from those countries;

(q) Promoting cooperation in the areas of science, technology and research in particular addressing poverty related and societal changes, open data, big data, artificial intelligence and innovation, while preventing the phenomenon of brain drain;

(r) Stepping up coordination amongst all relevant actors at all levels to help the transition from a natural or man-made emergency situation to the development phase; ensuring joined-up planning and programming of cooperation interventions, that are coherent with humanitarian aid, and, where relevant, peacebuilding actions, on the basis of joint analysis;

(s) Supporting freedom of thought, conscience and religion or belief, including by means of measures to eliminate all forms of hatred, intolerance and discrimination based on religion or belief and by fostering tolerance and respect for religious and cultural diversity within and among societies;

(t) Promoting intercultural dialogue and cultural diversity in all its forms, and preserve and promote cultural heritage, and unlocking the potential of creative industries for sustainable, social and economic development;

(u) Supporting actions, and promoting cooperation, in the area of sport to contribute to the empowerment of women, young people, individuals and communities as well as to the health, education and social inclusion objectives of the 2030 Agenda;

(v) Promoting the dignity and resilience of long-term forcibly displaced persons and their inclusion in the economic and social life of host countries and host communities, including at local level.

3. Migration, forced displacement and mobility

(a) Strengthening bilateral, regional and international partnerships on migration, forced displacement and mobility based on an integrated and balanced approach, covering all aspects of migration including assistance in implementing Union bilateral or regional agreements, dialogues and arrangements, including those on return and readmission, legal pathways and mobility partnerships, in full respect of international law and human rights obligations;

(b) Supporting sustainable reintegration of returning migrants and their families, as well as safe and dignified returns amongst partner countries in full respect of humanitarian and human rights obligations under international and Union law;

(c) Addressing and mitigating root causes of irregular migration and forced displacement;

(d) Tackling irregular migration and forced displacement; reducing the vulnerabilities in the context of migration including those caused by human trafficking and smuggling, as well as including supporting measures to protect victims of exploitation and abuse; and stepping up cooperation on integrated border management in line with international and Union law, human rights law, humanitarian law and data protection standards;

(e) Strengthening scientific, technical, human and institutional capacity for the management of migration, including human rights trainings, support partner countries’ reception, processing, asylum and return procedures; strengthening cross-border cooperation on exchange of information in compliance with data protection standards and obligations related to the right to privacy under international human rights law; and supporting the collection and use of accurate and disaggregated data as a basis for evidence-based policies in order to facilitate orderly, safe, regular and responsible migration and mobility;

(f) Supporting effective and human rights based migration policies, at all levels, including protection programmes;

(g) Promoting conditions for facilitating, as appropriate, legal migration and well-managed mobility, while respecting competences of the Member States, and people-to-people contacts, including in education, research and innovation, cultural exchange and intercultural dialogue, including by providing accurate and timely information, maximising the development impact of regular migration;

(h) Improving a common understanding of the migration–development nexus, recognising that orderly, safe, regular and responsible migration and mobility, peace, good governance, stability, inclusive growth and sustainable development are strongly interlinked, and pursuing synergies within these various dimensions;

(i) Ensuring the protection, the respect and fulfilment of the human rights of all migrants, refugees, forcibly displaced persons and internally displaced persons, including those displaced due to climate change, paying special attention to vulnerable groups;

(j) Supporting development oriented solutions for forcibly displaced persons, internally displaced persons and their host communities, including through socio-economic inclusion with access to labour market, decent jobs, education and services, to promote the dignity, resilience and self-reliance of displaced persons;

(k) Supporting diaspora engagement in countries of origin to contribute to sustainable development, including through the involvement of local authorities and civil society organisations, taking into account their potential for investments, supporting their solidarity and entrepreneurial initiatives;

(l) Promoting faster, cheaper and safer remittance transfers in both source and recipient countries, thus harnessing their potential for development.

Cooperation in this area will be managed in coherence with migration-relevant Union regulations, in full respect of the principle of policy coherence for development.

PLANET

4. Environment and climate change