Explanatory Memorandum to COM(2020)640 - Financial contributions to be paid by Member States to finance the European Development Fund, including the third instalment for 2020 - Main contents
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| dossier | COM(2020)640 - Financial contributions to be paid by Member States to finance the European Development Fund, including the third instalment ... |
|---|---|
| source | COM(2020)640  |
| date | 08-10-2020 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The proposal concerns a draft Council Decision on the third instalment of the financial contributions to the European Development Fund (EDF) to be paid by Member States in 2020.
The 11th EDF and other EDF funds that are still open (i.e. Eight, 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 (ACP) 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) 2018/1877 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 the EDF treasury financially. 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 that 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.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
In accordance with Article 19(7) of the 11th EDF Financial Regulation, the amount managed by the European Commission and the amount managed by the European Investment Bank (EIB) are specified separately.
In accordance with Article 46 of the 11th EDF Financial Regulation, the EIB has sent the European Commission its updated estimates of commitments and payments under the instruments it manages.
In accordance with Article 20(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 19(5) of the 11th EDF Financial Regulation, the Council must decide on this proposal at the latest 21 calendar days following the presentation, by the European Commission acting on behalf of the European Union, of this proposal.
Article 21(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.