Financing instrument for cooperation with industrialised and other high-income countries and territories (2007-2013)

The objective of the financing instrument for cooperation for the period 2007-2013 is to promote enhanced cooperation between the European Union (EU) and industrialised and other high-income countries. The European Community intends to further deepen its bilateral relations with industrialised and other high-income countries to strengthen the EU's role and place in the world, to consolidate multilateral institutions and to contribute to balance in the world economy and the international system.

ACT

Council Regulation (EC) No 1934/2006 of 21 December 2006 establishing a financing instrument for cooperation with industrialised and other high-income countries and territories

SUMMARY

For the past decade, the European Union (EU) has been strengthening its bilateral relations with industrialised and other high-income countries and territories, especially in North America, East Asia, South-East Asia and the Gulf region.

This Regulation aims to further strengthen the EU's relations with these countries, thereby consolidating multilateral institutions, contributing to balance and development of the world economy and the international system, and strengthening the EU's role and place in the world.

Furthermore, these relations have developed to embrace a widening array of subjects. Nevertheless, they could be further deepened in areas in which the EU and the industrialised and other high-income countries and territories have mutual interests. This necessity was recognised by the EU and these countries. In this context, the financing instrument for cooperation for the period 2007-2013 aims to consolidate cooperation between the EU and the partner countries.

Nature of the financing instrument for cooperation

This instrument supports all forms of cooperation with industrialised and other high-income countries and territories for which the EU is competent, whether bilateral, regional or multilateral. It focuses in particular on economic, financial and technical cooperation. The objective of the instrument is primarily:

• the promotion of cooperation, partnerships and joint undertakings between economic, academic and scientific actors of both parties;
• the stimulation of bilateral trade, investment flows and economic partnerships;
• the promotion of dialogues between political, economic and social actors of both parties;
• the promotion of people-to-people links, education and training programmes;
• the promotion of cooperative projects in areas such as research, science and technology, energy, transport and environmental matters and any other matter of mutual interest between the Community and the partner countries;
• the enhancement of awareness about and understanding of the EU and of its visibility in partner countries.

This instrument also seeks to promote, through dialogue and cooperation, commitment in partner countries to the principles of liberty, democracy, respect for human rights and fundamental freedoms and the rule of law, on which the EU is founded.

It should in this way foster a more favourable environment for the development of the relations between the EU and the countries concerned and promote dialogue.

The instrument covers industrialised and other high-income countries and territories which share similar political, economic and institutional structures and values to the EU. The relations between these countries and the EU are already important. In addition, these countries are often key players in multilateral bodies.

The countries concerned are Australia, Bahrain, Brunei, Canada, Chinese Taipei, Hong Kong, Japan, the Republic of Korea, Kuwait, Macao, New Zealand, Oman, Qatar, Saudi Arabia, Singapore, the United Arab Emirates and the United States. The list of these countries, which is set out in the Annex to the Regulation, may be amended, in particular on the basis of the changes made by the OECD Development Assistance Committee to its own list.

Nevertheless, in order to foster regional cooperation, countries not listed in the Annex may also benefit from financing under this Regulation where the operation concerned is of a regional or cross-border nature.

The implementation of the instrument must also be coherent with the external action of the EU.

Management and implementation

The financing instrument for cooperation is based on multiannual cooperation programmes, which set out the Community's strategic interests and priorities, the general objectives and the expected results. They also set out the areas to receive financing by the Community and the indicative financial allocation of funds for the priority areas and partner countries. These programmes may not exceed the period of validity of this Regulation and are reviewed at mid-term or ad hoc, if necessary.

Annual action programmes are adopted by the Commission based on multiannual cooperation programmes. The annual action programmes define the objectives pursued, the fields of intervention, the expected results, the management procedures and the total amount of financing planned. They also describe the operations to be financed and indicate the amounts allocated.

The entities eligible for funding include the following:

• partner countries and their regions, institutions and decentralised bodies;
• international and regional organisations, if they contribute to the objectives of this Regulation;
• joint bodies set up by the partner countries and regions and the Community;
• EU agencies.

The aid granted under the instrument may take the following forms:

• grant agreements, including scholarships;
• procurement contracts;
• employment contracts;
• financing agreements.

The cooperation programmes will be financed by the general budget of the EU, either in totality or in the form of co-financing. This co-financing can be undertaken in particular with the following entities:

• Member States, their regional and local authorities and their public and parastatal agencies;
• partner countries and their public and parastatal agencies;
• international and regional organisations, including international and regional financial institutions;
• companies, firms, other private organisations and businesses;
• partner countries in receipt of funding and other bodies eligible for funding.

The management of this instrument must meet the requirements of the protection of the Community's financial interests. For this purpose, the Commission and the Court of Auditors may perform ex-ante and ex-post document audits or on-the-spot audits of any contractor or subcontractor who has received Community funds.

The Commission performs regular evaluations of the programmes financed and formulates recommendations with a view to improving future operations. It also presents an annual report, describing the results of the implementation of the budget and the actions and programmes financed and their outcomes, to the European Parliament and the Council.

The Commission will submit a report covering the first three years of the implementation not later than 31 December 2010. Amendments are to be proposed to this Regulation, if necessary.

The Commission is assisted in its work by a committee.

The instrument is allocated a budget of EUR 172 million for the period 2007-2013.

This Regulation repeals Regulation (EC) No 382/2001 concerning the implementation of projects promoting cooperation and commercial relations between the EU and the industrialised countries of North America, the Far East and Australasia.

Last updated: 22.05.2007