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The Instrument for Pre-accession

Assistance (IPA) 2007-13

An overview with a focus on cross-border co-

operationGiannantonio BalletteEuropean Commission DG Enlargement - Financial Instruments Directorate 16 June 2006

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External Aid Instruments 2007-13

Rest of the World

“Ring of Friends”

Candidates/potential cand.EU

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External Aid Instruments 2007-13: COM proposal

Three policy driven/geographical instruments: Pre–Accession (IPA) Neighbourhood and Partnership (ENPI) Development Co–operation and Economic Co–

operation (DCECI)

Three crisis/global instruments: Stability (IfS) [+ Nuclear Safety] Humanitarian Aid (ECHO) – unchanged Macro–Financial Assistance – unchanged

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The Instrument for Pre-accession Assistance -

IPA

An integrated pre-accession instrument to assist candidate (Croatia, fYRoM, Turkey) and “potential candidate” countries (Albania; Bosnia and Herzegovina; Montenegro, Serbia including Kosovo under UNSCR 1244)

Replaces Phare, ISPA, SAPARD and Turkey pre-accession instruments, as well as the CARDS instrument

Financial envelope (2007–13): 10.2 billion € (2004 prices) (European Commission’s original proposal ~12.9 billion € )

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Structure of the IPA: 5 components

Single framework, differentiated approach

All countries:All countries:

I. Transition Assistance and Institution Building

II. Cross-Border Co-operation

In addition, for Candidate countries: In addition, for Candidate countries:

III. Regional Development

IV. Human Resources Development

V. Rural Development

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Regulatory framework

IPAIPA

==Council Framework RegulationCouncil Framework Regulation

[COM(2004) 627 of 29 Sept. 2004, to be adopted by Council hopefully before the end of June 2006]

++Detailed Implementing RegulationDetailed Implementing Regulation

Single implementing regulation, prepared by Commission, approved by Member States

(comitology)

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A 3–level programming framework

1.

2.

3.

POLITICAL and FINANCIAL FRAMEWORK“Enlargement Package” including the

Multi-annual Indicative Financial Framework (MIFF)all countries and by component (3 years rolling forwards)

STRATEGIC PLANNINGMulti-annual Indicative Planning Document (MIPD)

by country for all relevant components

Comp I Comp II Comp III Comp IV Comp V

Nationaland

Multi–countryProgrammes

JointProgrammingDocuments

Operational Programmes/Large project

Operationalprogramme

RuralDevelopmentprogramme

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The Instrument for Pre-accession Assistance –

IPA

The Cross-Border Co-operation Component

(CBC)

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IPA (Component II) CBC: Scope

Three strands: CBC at land and maritime borders with Member

States (EU external borders)

CBC at borders among candidates/potential candidates (essentially Western Balkan “internal” borders)

participation of candidates/potential candidates in the Structural Funds’ transnational (e.g. the successor of CADSES) and interregional programmes, and in ENPI Sea basins programmes, as appropriate

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The new approach for CBC at EU borders with CC/PCC (1)

Single instrument, single legal base: IPA CBC will apply to both sides of the border, on Member States and on (potential) candidates eligible territory

Single budget, with funding coming in a balanced way from ERDF and IPA, to be spent on both sides of the border (“common benefit”) under one set of rules [2007-13 global budget for CBC at EU-CC/PCC borders: ~ 530 million €]

Single management structures, where authorities of both sides are represented

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The new approach for CBC at EU borders with CC/PCC (2)

Envisaged solution: Structural Funds rules for CBC at EU internal borders to apply also at EU external borders with CC/PCC (future EU internal borders)

Adaptations to specific conditions of CBC with third countries to be kept to a very minimum

“Safety net” to avoid loss of funds for Member States

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Eligible Regions

Same eligibility rules as under the Structural Funds’ European territorial cooperation objective

NUTS level III regions (or equivalent) along land and maritime borders between Member States and adjacent (potential) candidates

Maritime borders: regions along the MS–CC/PCC borders separated by max 150 km

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IPA CBC programmes between MS and CC/PCC (1)

The eligible regions bring in a list of 12 potential IPA CBC programmes at EU borders:

Italy/Croatia–Bosnia & Herzegovina–Montenegro–Albania

Slovenia/Croatia Hungary/Croatia

Hungary/Serbia Romania/Serbia

Bulgaria/Serbia Bulgaria/fYRoM

Bulgaria/Turkey Greece/Turkey Greece/Albania

Greece/fYRoM Cyprus/Turkey

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IPA CBC programmes between MS and CC/PCC (2)

Please note that:

CBC between Member States is carried under the Structural Funds’ European territorial cooperation objective (not under IPA)

CBC between candidates/potential candidates is carried out under a specific strand of IPA CBC in programmes which do not include Member States

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Management and control

The aim: implement programmes under the Shared management and control system (Structural Funds rules)

An agreement among participating countries is required (regulates procedures for financial control and audit and for handling the recovery of funds)

At start-up, transitional arrangements could apply (“neighbourhood programmes” approach: shared mngt on MS side and external aid rules on CC/PCC side)

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Responsible AuthoritiesProgramme Structures

“Single” Managing Authority, Certifying Authority (payments), Audit Authority: “normally” located in the Member States

Under “transitional arrangements”: Implementing/ Contracting Authority also in CC/PCC

Programme Structures: Joint Monitoring/selection Cttee: oversees

implementation; responsible for selecting projects Joint Technical Secretariat: day-to-day management

of the programme Balanced representation of all participating countries in

programme structures

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Specificities of CBC at EU external borders under IPA

On top of the Commission decision approving the Joint programme (binding on the Member State), a Financing Agreement between the Commission and the relevant CC/PCC country is needed

Programmes will have a financial table covering 3 years (instead of 7 under Structural Funds)

Public procurements: a single set of rules in the entire eligible territory (external aid rules OR rules of the MS where the Management authority is located)

Disbursement deadline: n+4

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Programming IPA CBC at borders between MS and

CC/PCC (1)

Partner countries nominate a drafting team Main areas of intervention/priorities are agreed

among partners (to be included in the relevant IPA Multi–annual Indicative Planning Documents)

The relevant multi–annual joint programming document is drafted

Programme contents:– SWOT analysis– Strategy– Priorities– Financial provisions – Implementing provisions

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Programming IPA CBC at borders between MS and

CC/PCC (2)

Partnership principle: regional and local involvement, with national level

Programme must have no breakdown of funding per country

Draft joint programmes submitted to the Commission in the last quarter 2006

Programmes adopted by the Commission in the first half 2007 (COM decision)

Financing agreements with third countries

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Broad aims

Promote good neighbouring relations between countries/communities

Promote sustainable economic and social development in the border areas

Address common challenges in environment, public health, prevention of and fight against organised crime, …

Ensure efficient and secure borders Promote legal and administrative cooperation Promote local "people to people" type actions

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Implementation (1)

• Priorities are implemented through joint cross-border projects led by a single “lead partner”

• Projects are usually selected through open call for proposals

• Pre-identification of projects by joint Monitoring Cttee also possible

• Investment projects systematically co-financed by national funds

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Implementation (2)

• After selection, the Managing authorities signs a grant contract with the lead partner

• Transitional arrangements: separate contracting authorities in MS and CC/PCC

• Eligible beneficiaries:

– Public local/regional authorities

– Civil society, non-governmental bodies, economic and social actors

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Participation in ERDF transnational and

interregional programmes

“Entry ticket” concept: IPA can financially support the participation of (potential) candidate countries in the relevant ERDF transnational/interregional programmes, as appropriate

The entire territory of Western Balkans and some NUTS II areas of TR (to be confirmed) are eligible to the future South–East Europe ERDF transnational programme

Coastal NUTS II areas of TR are also eligible to the ERDF Mediterranean transnational programme

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Participation in ENPI Sea Basins programmes

“Entry ticket” concept: IPA can financially support the participation of (potential) candidate countries in the relevant ENPI Sea basins programmes, as appropriate

This concerns only Turkey, which coastal NUTS II regions on the Black Sea and on the Mediterranean are eligible to the Black Sea and the Mediterranean ENPI Sea basins programmes

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Next steps

Adoption of the IPA framework Regulation (June?)As soon as IPA framework Regulation is adopted:

presentation of the MIFF 2007-09 (July?) presentation of the IPA implementing rules to the

IPA Committee (Members States) and adoption by COM (Autumn)

Strategic planning (MIPD) per country (adopted in 2nd half 2006)

IPA CBC: programming meetings COM/partner countries on a programme–by-programme basis (July–September 2006)