EUROPEAN COMMISSION

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 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.

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,

(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.’

EUROPEAN COMMISSION

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

* 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.