Brussels, 10/06/2013 (Agence Europe) - Approval on Friday 7 June of the funding for the 11th European Development Fund (ETF), which will have a budget of €31.589 billion over seven years to fund cooperation between the EU and the states of Africa, the Caribbean and the Pacific (ACP) for the period 2014-2020, was the result of a compromise of the ACP-EU Council of Ministers, which has shelved for the time being any decision on the status of funds remaining out of previous EDFs.
In addition to the sum provided by the EU and welcomed by the ACP states for this self-standing budget, which is funded by the contributions of the member states of the EU and managed by the Commission, consensus was reached on how the funds were to be divided out (see EUROPE 10862), but as regards the “bridging clause” between the 10th EDF (2008-2013) and the 11th EDF, in order to avoid any interruption to funding between the expiry of the 10th EDF and the entry into force of the 11th EDF, the two sides did not reach any specific decisions, deciding by consensus to postpone the decision on this subject. In other words, it is not yet known whether the unspent money from previous EDFs and the 10th EDF, which will be made available to the ACP countries and regions to cover the transition period, will be considered an advance on the 11th EDF, or additional funds.
Given that the funds earmarked under the 11th EDF will not be available until nearly a year after the adoption of the revised Cotonou Agreement report by the ACP states and the member states of the EU, sums left over from the 10th EDF and previous EDFs and funds allocated but not spent will be used until the 11th EDF enters into force, as is customary. However, the European Commission took the view that these amounts should constitute an advance on the 11th EDF, whereas the ACP states felt that they should come on top, so that the level of the 11th EDF is fresh cash.
The envelope of €31.589 billion will be divided up into grants, for the most part, plus European Investment Bank (EIB) loans with subsidised interest rates. The funds are to be divided up as follows, as agreed by the ACP partners in the EU: €24.365 billion will go to national and regional indicative programmes; €3.590 billion have been earmarked for intra-ACP and inter-regional cooperation, the funding of joint institutions and bodies, and to cover some of the operational costs of the ACP Secretariat (grants); €1.134 billion will go to the investment facility of the European Investment Bank (grants); €2.5 billion for loans on EIB own funds. The internal agreement between the governments of the 27 on the details of the 11th EDF, including the new division key for contributions, is to be signed by the permanent representatives of the member states (Coreper) by the end of June. (AN/transl.fl)