The next MFF - Instruments and programmes for development

cooperationand humanitarian aid

Vienna, 14 December 2012

Karine Sohet

External Action Package• Big increase requested by EC for Heading 4: from €56bn to €70bn,

from 5.6% to 6.8% of the total EU budget– DCI: from €17.3 billion to €20.6 billion – EDF (for ACP countries): from €22.3 billion (over 6 years) to

€30.3 billion (over 7 years). 13%increase when duration and inflation is taken into account.

– Humanitarian Aid: from € 5.6 to € 6.4 b€ + 2.45 b€ in reserve outside the MFF.

• No big change in the instruments’ architecture: keep geographic and thematic/horizontal instruments. Only new is the Partnership Instrument.

• European Neighbourhood Instrument (ENI) = € 16,1 billion (€11,3 billion in 2007-2013), representing 23% of Heading 4 => Big increase

External Action package (2)

• Thematic programmes under DCI to be reduced to 2: • Global Public Goods (climate change & env, energy,

human development, food security, migration)• CSOs and Local Authorities

• New Pan-African Programme (1 b€)

Mainsteaming Climate financing – 50% of the budget for thematic programmes will finance climate and environment actions. 20% of geographic programmes for Human development but problem of definition of human development

31,8% - € 2bn

28,4% - € 1.8bn

20% - € 1.3bn

12,7% - € 0.8bn7,1% - € 0.4bn

€ 2bn

€ 1bn Pan-African Programme

Environment and Climate Change

Sustainable EnergyMigration and Asylum

Food Security and Sustainable Agriculture

CSO and LA

TH

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s Global Public Goods and Challenges

(At least 50% of the funds, prior to use of

OECD markers, will serve for Climate Action and Environment-related

objectives)

€ 6.303bn

Human Development

GEOGRAPHIC Programmes (national, regional, continental) € 13.991bn

DCITotal 23.3 bn€ (Annex VII)

REFLECTING the AGENDA for CHANGE

• Value for money and impact Differentiation between countries: no more ODA to govts of 17 UMIC and India and Indonesia (DCI countries). Also for EDF but no country with a zero envelope because of CPA. No differentiation for ENI but ‘more for more’

• Concentration: Maximum of 3 sectors per country for geographic programmes

• Inclusive growth support to private sector, leveraging loans with grants, aid for trade, regional aid

• EU interests security issues, raw material, energy, climate change, aid for trade, blending for big infrastuctures (EIB and other banks), agriculture

Reflecting the Agenda for Change (2)

• In principle more coordination and division of labour with MS but still difficult. Pilot on joint programming in 5 countries

• Supporting good governance and reform more for more in ENI, flexibility in EDF (top-up enveloppes), more conditionality on Budget support (less GBS)

• Support to Civil Society but not very prominent in draft regulations (in the meantime CSO communication). CSO-LA TP increased by 10% in DCI.

Next steps

• Next opportunity for agreement on the MFF early February. Van Rompuy latest proposal = 85 b€ cut compared to EC proposal.

• 13% cut in H4 (9.3 b€) and 11% cut for EDF (3.3 b€): H4 increased by 5% only, EDF stagnating, EAR cut by 20%. Risk of more cuts!

• Once MFF approved, EC to propose a division of H4 between instruments. Big instruments might lose more. Ashton will defend EIDHR and PI. Piebalgs DCI.

• Co-decision on the legal bases not before mid 2013. Formal trialogue blocked for the moment – delegated acts / EP scrutiny. Technical discussions going on informally. For differentiation, 4 pending countries: Peru, Ecuador, Colombia and SA.

A more flexible country programming process

• Country allocation criteria for both EDF and DCI in preparation.• Country programming started in June 2012 (without figures) More coherence & aid effectiveness: alignment to partner

countries & joint programming (5 pilot countries: Guatemala, Nepal, Ethiopia, Ghana, Rwanda, Mali suspended)

CSPs are not mandatory when alignment with national development plans

CSPs may be replaced by Joint (EU) Framework Documents

More flexible programming process for countries in fragile, crisis & post-crisis situations

Programming thematic programmes• Consultation on CSO-LA TP at the Policy Forum on

Development + additional inputs afterwards. Next step unclear.

• No real consultation on GDG&C yet. It seems that internal EC paper circulating. Next step unclear. Big concern for CONCORD.

• Pan –African: depending on the review of the JAES taking place in 2013. Summit in 2014.

• EC decision in May 2013. Consultation MS management committee and EP before.

• First discussion on EIDHR in November. Concept paper end 2012 followed by consultation.

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CSO-LA Thematic Programme 2014-2020Three proposed components

Development and Cooperation

Development and Cooperation

1. Focus on country level:Enhancing CSOs' and LAs' contribution to development and governance processes

2. Strengthening CSO and LA networks in the field of development at regional, EU and global level

3. Development Education and Awareness Raising initiatives fostering citizens' awareness and mobilization for development issues.

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Proposed allocations

Development and Cooperation

Development and Cooperation

Allocation

Priority 1: Focus on country-level: Enhancing CSOs' and LAs' contribution to governance and development processes

70-80 %

Priority 2: Strengthening CSO and LA networks for policy dialogue in the field of development at regional, EU and global level

5-10%

Priority 3: Development education and awareness raising initiatives fostering citizens' awareness of and mobilisation for development issues

10-15%

Support measures 3-5%

Reserve 3-5%

TOTAL 100%

TP Global Public Goods– multi-regional and/or cross-cutting;

– innovative policies and/or initiatives with the objective of informing future actions;

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

– actions which reflect a Union policy priority or an international obligation or commitment of the Union;

– actions in cases where there is no geographical programme or where it has been suspended.

Global Public Goods TP (2)A holistic and joined-up framework to address key linkages in the following areas of cooperation identified in the DCI:

•Environment and climate change

•Sustainable energy

•Food Security and Agriculture

•Migration and Asylum

•Human Development

Funding modalities

• New Financial regulation with simplified rules (VAT, sub-granting, lump-sum,…)

• Existing modalities: Core funding /Sub-granting / Delegated cooperation/ Twinning / Co-financing (in full & in kind) / Direct award of grants / Ring-fencing / Call for proposals for Local Authorities

• In development: Programme funding / Simplified calls for proposals

Simplified calls for proposals• 1 step procedure

• Effort to simplify the technical language

• Application form in 3 parts:• 1. Application form (project description)• 2. Budget• 3. Administrative data (Organisation's profile and

experience, partnership agreements (if any)

• Application form follows the logical framework structure

• Budget guidelines developed to guide budget elaboration