Explanatory Memorandum to COM(2018)688 - Financial contributions to be paid by Member States for the European Development Fund, including the ceiling for 2020, the amount for 2019, and a forecast for 2021, 2022 - Main contents
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| dossier | COM(2018)688 - Financial contributions to be paid by Member States for the European Development Fund, including the ceiling for 2020, the ... |
|---|---|
| source | COM(2018)688  |
| date | 15-10-2018 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The proposal covers:
– The ceiling for the annual amount of the contributions for 2020;
– The annual amount of the contributions for 2019;
– The amount of the first instalment of the contribution for 2019;
– Non-binding forecast for the expected annual amounts for the years 2021 and 2022.
The 11th European Development Fund (EDF) and other EDF funds which are still open (i.e. Eighth, Ninth and 10th EDF) are managed under the following set of rules:
- The current Partnership Agreement between the members of the African, Caribbean and Pacific Group of States on one side, and the European Community and its Member States on the other side (The 'ACP-EU Partnership Agreement’) as last amended 1 .
- The Internal Agreement between the Representatives of the Governments of the Member States of the European Union, meeting within the Council, on the financing of European Union aid under the multiannual financial framework for the period 2014 to 2020, in accordance with the ACP-EU Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the Treaty on the Functioning of the European Union applies 2 (the 11th EDF Internal Agreement).
- Council Regulation (EU) 2015/323 on the Financial Regulation applicable to the 11th European Development Fund 3 ("the 11th EDF Financial Regulation").
The documents mentioned above contain multi-annual commitments by Member States to support financially the EDF treasury. The 11th EDF Financial Regulation provides for regular contributions to be made by Member States to the EDF treasury against pre-determined financial commitments. Regular contributions are triggered by technical Council Decisions which reflect the implementation of financial commitments previously decided.
Some of the headings in the explanatory memorandum are therefore not applicable to regular contribution calls such as this one.
• Consistency with existing policy provisions in the policy area
Refer to point 1. Reasons for and objectives of the proposal.
• Consistency with other Union policies
Refer to point 1. Reasons for and objectives of the proposal.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Article 7 of the Internal Agreement 4 the contributions by Member States to the 11th EDF are to be approved by means of a Council decision adopted by qualified majority.
In accordance with Article 21(7) of the 11th EDF Financial Regulation, the amount managed by the Commission and the amount managed by the European Investment Bank (EIB) are specified separately.
In accordance with Article 52 of the 11th EDF Financial Regulation, the EIB has sent the Commission its updated estimates of commitments and payments under the instruments it manages.
In accordance with Article 22(1) of the 11th EDF Financial Regulation calls for contributions shall first use up the amounts available from previous EDFs, one after the other. The calls for contributions in this proposal therefore concern amounts under the 10th EDF for the EIB and amounts under the 11th EDF for the European Commission.
In accordance with Article 21(2) of the 11th EDF Financial Regulation, the Council shall decide on that proposal by 15 November.
Article 23(1) of the 11th EDF Financial Regulation provides that a Member State which fails to pay the instalment of the contribution due by the deadline will be required to pay interest on the amount unpaid; the arrangements for the payment of interest are specified in the same Article.
• Subsidiarity (for non-exclusive competence)
Refer to point 1. Reasons for and objectives of the proposal.
• Proportionality
Refer to point 1. Reasons for and objectives of the proposal.
• Choice of the instrument
Refer to point 1. Reasons for and objectives of the proposal.