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Document 52023PC0556

    Proposal for a COUNCIL DECISION on the financial contributions to be paid by the parties to the European Development Fund as a third instalment for 2023

    COM/2023/556 final

    Brussels, 6.10.2023

    COM(2023) 556 final

    2023/0339(NLE)

    Proposal for a

    COUNCIL DECISION

    on the financial contributions to be paid by the parties to the European Development Fund as a third instalment for 2023


    EXPLANATORY MEMORANDUM

    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 11th European Development Fund to be paid by parties to the European Development Fund (‘EDF’) in 2023.

    The 11th EDF and other EDF funds that are still open (that is to say the Ninth and 10th EDF) are managed under the following set of rules:

    (a)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 ;

    (b)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’);

    (c)Council Regulation (EU) 2018/1877 on the Financial Regulation applicable to the 11th European Development Fund 3 (the ‘11th EDF Financial Regulation’).

    (d)Decision No 1/2022 4 of the ACP-EU Committee of Ambassadors of 21 June 2022 to amend Decision No 3/2019 5 of the ACP-EU Committee of Ambassadors to adopt transitional measures pursuant to Article 95(4) of the ACP-EU Partnership Agreement to further extend the application of the provisions of the ACP-EU Partnership Agreement until 30 June 2023, or until the entry into force of the new Agreement, or the provisional application between the Union and the ACP States of the new Partnership Agreement, whichever comes first;

    (e)Council Decision (EU) 2020/2233 concerning the commitment of the funds stemming from reflows under the ACP Investment Facility from operations under the 9th, 10th and 11th European Development Funds 6 ;

    (f)Council Decision (EU) 2022/1223 7 concerning the allocation of funds de-committed from projects under the 10th and 11th European Development Funds for the purpose of financing actions addressing the food security crisis and economic shock in African, Caribbean and Pacific (ACP) countries following Russia’s war of aggression against Ukraine.

    The documents referred to in points (a) to (f) contain multi-annual commitments by the parties to support the EDF treasury financially. The 11th EDF Financial Regulation provides for regular contributions to be made by the parties 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(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.    

    2023/0339 (NLE)

    Proposal for a

    COUNCIL DECISION

    on the financial contributions to be paid by the parties to the European Development Fund as a third instalment for 2023

    THE COUNCIL OF THE EUROPEAN UNION,

    Having regard to the Treaty on the Functioning of the European Union,

    Having regard to 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 8 and in particular Article 7(2) in conjunction with Article 14(3) thereof,

    Having regard to the Council Regulation (EU) 2018/1877 9 of 26 November 2018 on the financial regulation applicable to the 11th European Development Fund, and repealing Regulation (EU) 2015/323 10 , and in particular Article 19(5) thereof,

    Having regard to the proposal from the European Commission,

    Whereas:

    (1)In accordance with Article 46 of Council Regulation (EU) 2018/1877, the European Investment Bank (‘EIB’) is to send to the Commission its updated estimates of commitments and payments under the instruments it manages.

    (2)In accordance with Article 19(5) of Council Regulation (EU) 2018/1877, the Commission is to present a proposal by 10 October 2023 specifying the amount of the third instalment of the contribution for 2023. 

    (3)Pursuant to Article 20(1) of Regulation (EU) 2018/1877 calls for contributions are to first use up the amounts provided for in previous European Development Funds (‘EDF’). Therefore, a call for funds pursuant to Regulation (EU) 2018/1877, for the EIB and for the Commission should be made.

    (4)Pursuant to Article 152 of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (‘the withdrawal agreement’), the United Kingdom of Great Britain and Northern Ireland (the ‘United Kingdom’) is to remain party to the EDF until the closure of the 11th EDF and all previous unclosed EDFs. However, pursuant to Article 153 of the withdrawal agreement the United Kingdom’s share in decommitted funds from projects under the 11th EDF, where those funds have been decommitted after 31 December 2020, or previous EDFs are not to be reused.

    (5)Council Decision (EU) 2022/2242 11 , sets the annual amount of the contribution to be paid by the parties to the EDF for 2023 at EUR 1 800 000 000 12 for the Commission, and at EUR 300 000 000 for the European Investment Bank.

    (6)In order to allow for the prompt application of the measures provided for in this Decision, this Decision should enter into force on the day of its publication in the Official Journal of the European Union,

    HAS ADOPTED THIS DECISION:

    Article 1

    The amount of the contributions to be paid by the parties to the European Development Fund as a third instalment for 2023 is hereby set at EUR 500 000 000. It shall be divided into EUR 400 000 000 for the Commission, and EUR 100 000 000 for the EIB.

    Article 2

    The individual European Development Fund contributions shall be paid by the parties to the European Development Fund to the Commission and the European Investment Bank as the third instalment for 2023, in accordance with the Annex.

    Article 3

    This Decision shall enter into force on the date of its publication in the Official Journal of the European Union.

    Done at Brussels,

       For the Council

       The President

    (1)    OJ L 317, 15.12.2000, p. 3
    (2)    OJ L 210, 6.8.2013, p. 1
    (3)    OJ L 307, 3.12.2018, p. 1-21
    (4)    OJ L 176, 01.07.2022, p.88
    (5)    OJ L 1, 3.1.2020, p.3
    (6)    OJ L 437, 28.12.2020, p.188-191
    (7)    OJ L 188 du 15.7.2022, p. 147
    (8)    OJ L 210, 6.8.2013, p.1
    (9)    OJ L 307, 3.12.2018, p.1
    (10)    OJ L 58, 3.3.2015, p.17-38
    (11)    COUNCIL DECISION (EU) 2022/2242 of 14 November 2022 on the financial contributions to be paid by the parties to the European Development Fund to finance that fund, specifying the ceiling for 2024, the annual amount for 2023, the amount of the first instalment for 2023 and an indicative and non-binding forecast for the expected annual amounts of contributions for the years 2025 and 2026
    (12)    Council Regulation (EU) 2018/1877 of 26 November 2018 on the Financial Regulation applicable to the 11th European Development Fund, and repealing Regulation (EU) 2015/323 (OJ L 307, 3.12.2018, p.1.), Art. 20(5):“Where negative interest is applied to the account referred to in paragraph 3 of this Article, the Member State concerned shall, at the latest on the date of payment of each instalment referred to in Article 19, credit the account with an amount corresponding to the amount of such negative interest applied until the first day of the month preceding the payment of the instalment.’
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    Brussels, 6.10.2023

    COM(2023) 556 final

    ANNEX

    to the

    Proposal for a

    COUNCIL DECISION

    on the financial contributions to be paid by the parties to the European Development Fund as a third instalment for 2023


    ANNEX

    Third Instalment of EDF Contributions for 2023 (EUR)

    MEMBER STATES & UK

    Key 11th EDF %

    3rd instalment 2023 (EUR)

    Total

    Commission

    EIB

    11th EDF

    11th EDF

    BELGIUM

    3,24927

    12 997 080

    3 249 270

    16 246 350

    BULGARIA

    0,21853

    874 120

    218 530

    1 092 650

    CZECHIA

    0,79745

    3 189 800

    797 450

    3 987 250

    DENMARK

    1,98045

    7 921 800

    1 980 450

    9 902 250

    GERMANY

    20,57980

    82 319 200

    20 579 800

    102 899 000

    ESTONIA

    0,08635

    345 400

    86 350

    431 750

    IRELAND

    0,94006

    3 760 240

    940 060

    4 700 300

    GREECE

    1,50735

    6 029 400

    1 507 350

    7 536 750

    SPAIN

    7,93248

    31 729 920

    7 932 480

    39 662 400

    FRANCE

    17,81269

    71 250 760

    17 812 690

    89 063 450

    CROATIA

    0,22518

    900 720

    225 180

    1 125 900

    ITALY

    12,53009

    50 120 360

    12 530 090

    62 650 450

    CYPRUS

    0,11162

    446 480

    111 620

    558 100

    LATVIA

    0,11612

    464 480

    116 120

    580 600

    LITHUANIA

    0,18077

    723 080

    180 770

    903 850

    LUXEMBOURG

    0,25509

    1 020 360

    255 090

    1 275 450

    HUNGARY

    0,61456

    2 458 240

    614 560

    3 072 800

    MALTA

    0,03801

    152 040

    38 010

    190 050

    NETHERLANDS

    4,77678

    19 107 120

    4 776 780

    23 883 900

    AUSTRIA

    2,39757

    9 590 280

    2 397 570

    11 987 850

    POLAND

    2,00734

    8 029 360

    2 007 340

    10 036 700

    PORTUGAL

    1,19679

    4 787 160

    1 196 790

    5 983 950

    ROMANIA

    0,71815

    2 872 600

    718 150

    3 590 750

    SLOVENIA

    0,22452

    898 080

    224 520

    1 122 600

    SLOVAKIA

    0,37616

    1 504 640

    376 160

    1 880 800

    FINLAND

    1,50909

    6 036 360

    1 509 090

    7 545 450

    SWEDEN

    2,93911

    11 756 440

    2 939 110

    14 695 550

    UNITED KINGDOM*

    14,67862

    58 714 480

    14 678 620

    73 393 100

    TOTAL EU-27 & UK

    100,00

    400 000 000

    100 000 000

    500 000 000

    * Further to Art. 153 of the Withdrawal Agreement, the UK formally requested in March 2023 that the Commission refund in 2023 their outstanding share of the 10th and 11th EDF reserves by netting-out the UK outstanding contribution to the EDF for 2023 (2nd and 3rd instalment, ie a total of €154,12 million). This netting-out will be reflected in the respective payment instructions. 

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