EUROPEAN COMMISSION

Brussels, 3.9.2025

COM(2025) 599 final

2025/0264(CNS)

Proposal for a

COUNCIL DECISION

amending Decision (EU) 2021/1764 on the Association of the Overseas Countries and Territories with the European Union including relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other

{SWD(2025) 625 final} - {SWD(2025) 626 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

This proposal is made in the context of the multiannual financial framework (MFF) 2028-2034. The Communication ‘Dynamic EU Budget for the priorities of the future - The Multiannual Financial Framework 2028-2034’ 1  sets the political ambition to deliver on the Union’s priorities while acting with strength and unity on the global stage over the next decade.

One such priority is stepping up support under the Council Decision on the association of the Overseas Countries and Territories with the European Union, including relations between the European Union on one hand, and Greenland and the Kingdom of Denmark on the other (Decision on Overseas Association, including Greenland – DOAG) 2 , for which the Commission proposes an amendment (see below).

The thirteen European Union (EU) Overseas Countries and Territories (OCTs) 3  are all islands 4 , located in the Arctic, the Atlantic, the Caribbean, the Indian Ocean, and the Pacific 5 , with a combined population of approximately one million people. All of them have their Exclusive Economic Zones (EEZs) that, combined, constitute the world's largest EEZ, covering over 15 million square kilometres.

The OCTs are associated with the EU and constitutionally linked to Denmark (Greenland), France (six OCTs) and the Netherlands (six OCTs), on which they depend to varying degrees as non-sovereign countries or territories. Most OCTs enjoy wide-ranging autonomy, covering areas such as economic affairs, public health, home affairs and customs. Defence and foreign affairs usually remain within the remit of the respective EU Member States.

The OCTs are part of the related EU Member States, but not part of the EU (unlike the EU’s outermost regions 6 ). Even if they are not part of the EU, they cannot be considered third countries either 7 (see also below).

They do not form part of the single market and the Schengen area and are not bound by the EU’s acquis. They are subject to their own legislation in accordance with the respective distribution of competences with their EU Member States. However, the citizens of the OCTs are EU citizens (via their citizenship of the related EU Member States) with full citizens’ rights throughout the EU 8 .

The current legal framework is established by the Decision on the Overseas Association, including Greenland (DOAG) 9 . It provides a single legal basis for all the OCTs with a dedicated budget chapter.

DOAG merges the former Greenland Decision 10 with the last Overseas Association Decision (OAD) 11 as part of the simplification effort under the 2021-2027 MFF to reduce the number of external financing instruments, thereby streamlining their architecture and performance. The merge was also driven by the end of the European Development Fund (EDF) that provided financing to the OCTs other than Greenland (for the bilateral envelope). Greenland has a specific place in DOAG, notably because of its historical ties with the EU 12 and the uniqueness of the partnership.

DOAG is based on three pillars: dialogue, trade and financial cooperation. It provides for the institutional framework of the partnership, specifies unilateral trade preferences, and sets rules for effective programme implementation to pursue the objectives of the partnership.

Unlike the NDICI – Global Europe 13 that established a funding instrument (2021-2027), DOAG is a Council Decision that establishes (i) an association of the OCTs with the Union in line with the Treaty provisions, and (ii) a funding programme for the association. Therefore, DOAG is one of the rare basic acts under external action that does not have a sunset clause linked to the duration of the MFF (except for its funding programme).

Different legislative procedures apply to NDICI–Global Europe and DOAG: ordinary legislative procedure and special legislative procedure  14  respectively.

For these reasons, NDICI and DOAG could not be merged and adopted as one package during the 2021-2027 MFF. The same approach will apply for the MFF 2028-2034: a legal proposal for the EU partnership with the OCTs remains separate from Global Europe 15  due to its distinctive legal nature.

The evaluations and other available evidence confirm that the purpose, the objectives, the institutional framework of the association with its areas of cooperation, as well as the trade provisions of the partnership as reflected in DOAG, remain largely relevant and fit for purpose, providing a clear response from the Union to underlying policy goals. However, considering its sunset clause, the funding programme for the association needs to be presented again, including its financial envelope and implementation modalities.

In this context, an amendment of DOAG is proposed under the upcoming MFF. The amendment will focus on the funding programme and other selected DOAG provisions to further develop the strategic dimension and to ensure greater impact while delivering on the objectives of the EU-OCT partnership.

Consistency with existing policy provisions in the policy area

The association partnership between the OCTs and the EU dates back to the Treaty of Rome (1957) and is enshrined in Part IV of the Treaty of the Functioning of the EU (TFEU – Articles 198 to 204). The current rules and procedures of the OCTs-EU association are laid down in the Decision on the Overseas Association, including Greenland (DOAG), which has no end date linked to the duration of the MFF (except for its 2021-2027 funding programme).

The partnership with the OCTs is also referred to in the EU Strategy for Cooperation in the Indo-Pacific 16 , the EU' s Arctic Policy ‘A stronger EU engagement for a peaceful, sustainable and prosperous Arctic’ 17 , and the 2023 Agenda for Relations between the EU and Latin America and the Caribbean 18 . In addition, the Samoa Agreement 19 considers the geostrategic importance of the OCTs for cooperation with the African, Caribbean, and Pacific (ACP) states and provides for their observer status in joint institutions established under the Regional Protocols. The OCTs are also present in the Communication on the EU’s outermost regions 20 .

This stronger strategic importance is maintained in the amended DOAG where the OCTs and their sustainable development needs are part of the EU’s response to global challenges. By focusing on the promotion of a green and blue economy, climate change adaptation and mitigation, disaster risk reduction, a secured and trusted digital connectivity, education, food security, as well as tourism and creative industries, the amended DOAG will ensure continuous close alignment with key international frameworks, including the Paris Agreement on Climate Change 21 , the 2030 Agenda for Sustainable Development 22 , the Sendai Framework for Disaster Risk Reduction (2015-2030) 23 , the Kunming-Montreal Global Biodiversity Framework 24 , the Addis Ababa Action Agenda 25 , the Istanbul Convention on violence against women 26 and the Pact for the Future 27 .

Consistency with other Union policies

Consistency and complementarity will be ensured among the Union’s external financing instruments, in particular between the amended DOAG and Global Europe.

The amended DOAG will support the objectives of the Global Gateway strategy 28 , the Union’s external investment strategy, to help unlock investment opportunities in the OCTs and help them to integrate more effectively into EU’s and global value and supply chains, while advancing the sustainable development goals.

Furthermore, in this framework, consistency and complementarity will also be ensured with the Union’s trade and investment, economic cooperation, industrial policies, security and other sectoral cooperation by supporting the external dimension of Union internal policies.

In particular, serving the new foreign economic policy and in synergy with the European Competitiveness Fund 29 , the amended DOAG will enhance the Union’s and OCTs’ competitiveness and economic security, in particular by contributing to the sustainability, resilience, security and diversification of value and supply chains, reflecting high standards of responsible business practice, and by increasing economic opportunities.

The presented framework will harness the potential of mutually beneficial partnerships for sustainable development in the Union and in the OCTs alike.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The association between the EU and the OCTs is enshrined in Part IV of the Treaty on the Functioning of the EU (TFEU – Articles 198-204). The detailed rules and procedures of the association are laid down in DOAG, based on Article 203 of the TFEU, under which such act is adopted in accordance with a special legislative procedure.

Articles 198-204 of the TFEU also apply to Greenland, subject to the specific provisions set out in the Protocol No 34 on special arrangements for Greenland annexed to the TFEU.

Subsidiarity (for non-exclusive competence)

DOAG’s added value lies in its ability to address the purpose of the association as defined in Article 198 of the TFEU: ‘… to promote the economic and social development of the countries and territories and to establish close economic relations between them and the Union as a whole’ that individual EU Member States (even those having special links with the OCTs) could not achieve on their own.

With increasing global competition, the OCTs assume renewed importance, together with the outermost regions, as strategic outposts of Europe, members of the European family within their respective regions, that bolster the EU’s global presence by helping promote EU interests and advance EU values across the four corners of the world.

This stronger strategic importance is also reflected in the amended DOAG where the OCTs and their sustainable development needs are part of the EU’s response to global challenges.

The amended DOAG will achieve this by enhancing OCTs’ competitiveness, strengthening their resilience, and reducing their economic and environmental vulnerability, while promoting cooperation between them and other partners, including ACP/non-ACP states and territories and the EU’s outermost regions, under the umbrella of the Global Gateway strategy. Such action at Union level is considered necessary to ensure the OCTs are effectively integrated into relevant EU’s regional and global initiatives and the related value and supply chains, driving sustainable development.

Compared to individual national actions, the EU, together with its Member States, can achieve greater impact by incentivising and pooling together public and private investments to the benefit of the OCTs, and by coordinating common positions and speaking with a stronger voice in multilateral and regional fora on issues important for the OCTs.

Proportionality

In line with the principle of proportionality, the proposed amending Decision does not go beyond what is necessary to achieve its objectives.

Choice of the instrument

In accordance with Article 203 of the Treaty on the Functioning of the European Union, which sets out the special legislative procedure to be used to adopt detailed rules and the procedure for the association of the OCTs with the Union, the proposal takes the form of an amending Council Decision, ensuring its uniform application, binding nature in its entirety and direct applicability.

3.RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

I.the partnership within DOAG remains strong thanks to the long and deep political and cultural relationship between the OCTs and Europe.

II.the consolidation and rationalisation of external financing instruments 32 has simplified the regulatory framework and streamlined programming and financial allocation processes, which are now largely unified under the DOAG;

Stakeholder consultations

For the mid-term evaluation, the consultation approach involved collecting input from a wide range of stakeholders on the external financing instruments, including DOAG, through an open public consultation. The summary report on the results of the consultation carried out in the framework of the mid-term evaluation has been published on the ‘Have Your Say’ website and it provides an overview of the received contributions. A targeted consultation was also undertaken for the mid-term evaluation, to gather the views of specific categories of stakeholders. In the context of targeted consultations, EU Member States experts, development agencies of the EU Member States, civil society and local authorities’ networks and platforms, Development Financial Institutions, and the United Nations were consulted through dedicated meetings. The summary of these targeted consultations can be found in the synopsis report of the stakeholder consultation, in annex V of the mid-term evaluation.

Collection and use of expertise

The mid-term evaluation report and associated Staff Working Document were largely based on the independent study carried out by external consultants. All five compulsory evaluation criteria (i.e. effectiveness, efficiency, relevance, coherence and the EU added value) were assessed in this study. The evaluation criteria of impact and sustainability were also covered. The evaluation methods used included: (i) a review of documentation and analytical data; (ii) interviews with beneficiaries and other major stakeholders; (iii) a series of targeted surveys; (iv) targeted consultations and an open public consultation. This expertise was also used as evidence base for the ex ante evaluation of this proposal, together with the results of the open public consultations as explained above.

Ex ante evaluation

Beyond the March 2024 mid-term evaluation, a number of other sources have been used to assess the performance and analyse the added value of the EU’s action in relation to the OCTs, including the annual reports from the Commission to the Council on the implementation of the financial assistance provided to the OCTs 33 and the annual programme performance statements 34 . In addition, some OCTs, such as Greenland 35 , French Polynesia 36 , and Saint Pierre and Miquelon 37 , have been evaluated using the Public Expenditure and Financial Accountability (PEFA) methodology, which measures the performance of public finance management systems against internationally recognised standards. Regular progress and monitoring reports, final implementation reports, annual reports provided for the budget support payment requests, as well as field visits, mission reports, and aides-mémoire of dialogue meetings were also a useful source of information for this evaluation.

While the ex ante evaluation broadly confirms the conclusions of both the mid-term and the stakeholder consultation, it provides a more comprehensive analysis of the DOAG performance, its EU added value, as well as lessons learned and challenges. It also sets out proposed solutions to address these challenges, outlines the future structure of the financial assistance, and the priority areas that should guide the implementation.

The evaluation demonstrates DOAG’s consistently high performance towards the achievement of desired outcomes. In particular, the evidence shows that DOAG:

–Is on track to effectively deliver its objectives, reaffirming the strategic dimension of the partnership.

–Has successfully integrated the former Greenland Decision 38 and is delivering on the partnership with Greenland.

–Has promoted coherence with the broader EU financing architecture.

–Adaptation to global trends and integration into regional economies.

–Coherence with the broader EU financing architecture.

–Effective dialogue.

Based on the analysis of the performance and the added value of the EU action, and taking due account of the lessons learned and challenges identified, the evaluation proposes a set of amendments to further reinforce DOAG’s strategic dimension and to ensure more impact while delivering on the objectives of the EU-OCT partnership.

The amendments concern the DOAG body text and Annex I. Annexes II, III, and IV were significantly updated during the 2021-2027 MFF negotiations and remain fit for purpose. The proposed changes aim at:

–Boosting the strategic investment agenda under the Global Gateway.

–Reinforcing coherence within the broader EU financing architecture, including enhanced eligibility and access to Union programmes and external financing instruments.

–Strengthening focus and enhancing structure of the dialogue.

Regulatory fitness and simplification

DOAG merges the former Greenland Decision 39 with the last OAD 40 as part of the simplification effort under the 2021-2027 MFF to reduce the number of external financing instruments, thereby streamlining their architecture and performance.

In terms of implementation, unless otherwise specified, DOAG refers to NDICI-Global Europe, streamlining procedures through a common regulatory frame and increasing alignment between both basic acts.

The amended DOAG ensures the reference to Global Europe for the implementation of financial cooperation, unless otherwise specified in the amending Decision. In terms of aligning rules, horizontal provisions from the Performance Regulation 41 will provide the amended DOAG and the other programmes/instruments under the MFF with a coherent and harmonised framework and will make it easier for partners and implementing agents to understand.

Fundamental rights

One of the Treaty-based general objectives of the EU’s external action (Article 3(5) and Articles 8 and 21 TEU) is to support and promote democracy, the rule of law and respect for human rights. The OCTs are parts of the territory of three EU Member States. They are subject to their own legislation in accordance with the respective distribution of competences with the Member States to which they are linked. The OCTs’ legal framework for fundamental rights is in line with the principles upheld by the EU. Under the amending Decision, those principles will remain integral throughout all actions, recognising their essential role in achieving the SDGs.

4.BUDGETARY IMPLICATIONS

The European Commission proposes to allocate an indicative financial envelope of EUR 999 million (in current prices) to the association’s funding programme for 2028-2034. The detailed estimated financial impact of this proposal is presented in the legislative financial and digital statement enclosed with this proposal.

5.OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

Implementation plans and monitoring, evaluation and reporting arrangements will follow the rules set out in the Performance Regulation 42  .

Detailed explanation of the specific provisions of the proposal

The proposed amendments aim at:

–Boosting the strategic investment agenda under the Global Gateway.

–Reinforcing the coherence with the broader EU financing architecture.

–Strengthening focus and improving the structure of the dialogue with the OCTs.

Boosting the strategic investment agenda under the Global Gateway

To bring the EU-OCTs partnership more in line with the commitments under the Global Gateway strategy, it is proposed to merge allocations for territorial (bilateral) and regional cooperation for OCTs, and prepare a separate financing envelope for Greenland, dividing financing as follows:

I.the cooperation with the OCTs other than Greenland, and

II.the cooperation with Greenland,

while providing for flexible implementation modalities.

It is proposed these two pillars to be complemented by an allocation for studies and technical assistance a well as by an unallocated emerging challenges and priorities cushion (a non-allocated fund), to increase flexibility as well as the ability of the Union to respond to unforeseen needs, building on the experience of the current DOAG.

It is also proposed to bring joint initiatives between the OCTs (currently ‘regional cooperation’) as well as between them and ACP/non-ACP states and territories, EU’s outermost regions and relevant regional bodies (currently ‘intra-regional cooperation’) under a single ‘regional cooperation’ framework. This would offer more flexibility in establishing effective partnerships to promote sustainable development and mutual learning. A specific reference to ‘intra-regional cooperation’ would therefore be deleted as obsolete.

The proposed approach would allow for greater flexibility in structuring financial cooperation and creating synergies with existing tools and instruments, including under the Global Gateway strategy, in a more targeted and interconnected way. This would further unlock investment opportunities in the OCTs and help them integrate more effectively into EU and global value and supply chains and related regional initiatives - enhancing financial (and political) leverage and impact.

Reinforcing coherence with the broader EU financing architecture

It is proposed to further reinforce the ‘external’ DOAG dimension specifying the eligibility and access of the OCTs to relevant Union programmes and external financing instruments by consistently applying related cross-references/mirror clauses across all relevant basic acts. The objective is to increase the complementarities of EU actions and strengthen the integration of the OCTs into the EU’s competitiveness agenda.

To this end, it is proposed that:

·The OCTs are eligible for the global pillar of the Global Europe instrument and DOAG would apply Global Europe’s strengthened toolbox, including budget support, also in the form of or in combination with policy-based loans, budgetary guarantees, financial instruments, blending and technical assistance, that would allow comprehensive investment support packages to be built in the OCTs.

·Projects in OCTs could benefit from funding from the European Competitiveness Fund (ECF), and other relevant Union programmes, based on the selection criteria under these Programmes.

The ECF’s comprehensive architecture would allow it to accompany OCTs’ Global Gateway-related projects along the entire investment journey, from research, through scale-up, industrial deployment, to manufacturing, in addition to and/or in complementarity with DOAG. The fund could also help leverage and de-risk private investment.

DOAG will follow the horizontal rules of Regulation (EU, Euratom) [XXX] [Performance Regulation] for monitoring, reporting, evaluation and communication

It is also proposed that DOAG include necessary exceptions to allow for more financial flexibility and simplified rules, e.g. for the comitology procedure for action plans and measures with relatively little funding and for the programming process, i.e. replacing multiannual indicative programmes by annual or multiannual action plans in situations where one single action is planned for the entire MFF.

2025/0264 (CNS)

Proposal for a

COUNCIL DECISION

amending Decision (EU) 2021/1764 on the Association of the Overseas Countries and Territories with the European Union including relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 203 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Parliament 43 ,

Acting in accordance with a special legislative procedure,

Whereas:

(1)Council Decision (EU) 2021/1764 44 establishes the rules and the procedure for the association of the Union with the Overseas Countries and Territories (OCTs), including Greenland as from 1 January 2021. It also establishes the funding programme for the association (the ‘Programme’) for the period from 1 January 2021 to 31 December 2027.

(2)In the context of adoption of the new Multiannual Financial Framework (‘MFF’) and the overall relevance of the Decision (EU) 2021/1764 in addressing the purpose and the underlying policy objectives of the association, Decision (EU) 2021/1764 should be amended.

(3)The strategic focus, coherence and flexibility of the Programme and the policy dialogue framework of the Decision should be further enhanced to ensure more impact while delivering on the objectives of the association of the Union with the OCTS. 

(4)In a rapidly changing economic, social and geopolitical environment, recent experience has shown the need for a more flexible multiannual financial framework and Union spending programmes. To that effect, and in line with the objectives of the association, the funding should duly consider the evolving policy needs and Union’s priorities as identified in relevant documents published by the Commission, in Council conclusions and European Parliament resolutions while ensuring sufficient predictability for the budget implementation.

(5)The implementation of the amended Decision (EU) 2021/1764 should support the Global Gateway strategy 45 , the Union’s external investment strategy to advance the sustainable development goals together with partner countries and territories. Complementarities between actions under the Global Gateway strategy and its toolbox should be strengthened to help unlock investment opportunities in the OCTs and promote their more effective integration into Union’s regional cooperation frameworks.

(6)The amended Decision (EU) 2021/1764 should enhance the Union’s and OCTs’ competitiveness, by contributing to the sustainability, resilience, security and diversification of value and supply chains, reflecting high standards of responsible business practice, and by increasing economic opportunities. Consistency between the implementation of the Union’s trade, economic security, and industrial policies and Decision (EU) 2021/1764 should be ensured. In particular, synergies should be fostered between the Programme established by Decision (EU) 2021/1764 and the European Competitiveness Fund established by Regulation (EU)…/…of the European Parliament and the Council 46 , to harness the potential of mutually beneficial partnerships for sustainable development in the Union and the OCTs.

(7)The OCTs represent unique and strategic assets that benefit the Union as a whole – including proximity to third countries, exceptional conditions for space and astrophysics research, abundant renewable energy potential, rich biodiversity, extensive maritime zones, and availability of mineral resources. The European Competitiveness Fund should leverage their potential as geostrategic outposts, particularly in support of the Union’s objectives on security, preparedness, regional value chains, and competitiveness.

(8)The structure of the dialogue between the Union and the OCTs, especially through the annual forum and the four trilateral consultations each year should be reviewed to enhance its strategic impact.

(9)To ensure consistent implementation, the rules and procedures laid down in Regulation (EU)…/…of the European Parliament and of the Council 47  [Global Europe] should apply to the implementation of Decision (EU) 2021/1764, where appropriate, and the implementing provisions under that Decision should refer to the provisions provided for in Regulation (EU)…/…. 

(10)Decision (EU) 2021/1764 is to be implemented in accordance with Regulation (EU, Euratom)…/… 48 [Performance Regulation] which establishes the rules for the expenditure tracking and the performance framework for the budget, including rules for ensuring a uniform application of the principles of ‘do no significant harm’ through on a single and simple guidance and the gender equality principle referred to in Article 33(2), points (d) and (f), of Regulation (EU, Euratom) 2024/2509 of the European Parliament and the Council respectively, rules for monitoring and reporting on the performance of Union programmes and activities, rules for establishing a Union funding portal, rules for the evaluation of the programmes, as well as other horizontal provisions applicable to all Union programmes such as those on information, communication and visibility.

(11)Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 49 applies to the Programme. It lays down the rules on the establishment and the implementation of the general budget of the Union, including the rules on grants, prizes, non-financial donations, procurement, financial assistance, and indirect management in the form of financial instruments and budgetary guarantees. For the purpose of the Amended Decision (EU) 2021/1764, current prices are calculated by applying a fixed 2% deflator.

(12)To ensure consistency, the budgetary guarantee and financial instruments, including when combined with non-repayable support in blending operations, under the amended Decision (EU) 2021/1764 should be implemented in accordance with the applicable rules of the Global Europe mechanisms or the ECF InvestEU Instrument through agreements concluded for that type of support under Global Europe delivery mechanisms or the ECF InvestEU Instrument.

(13)Where Union support under Decision (EU) 2021/1764 is to be provided in the form of a budgetary guarantee or a financial instrument, including where combined with non-repayable support in a blending operation, it is necessary that such support is provided exclusively through the Global Europe delivery mechanisms or the ECF InvestEU Instrument in accordance with the applicable rules of the Global Europe delivery mechanisms or the ECF InvestEU Instrument. 

(14)In order to amend non-essential elements of this Decision, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to amend the provisioning rate. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making 50 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(15)In order to ensure uniform conditions for the implementation of the Programme through the relevant implementing acts, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council 51 .

(16)Decision (EU) 2021/1764 should therefore be amended accordingly to ensure the continuation of the partnership between the Union and the OCTs under the 2028-2034 MFF, 

HAS ADOPTED THIS DECISION:

Article 1
Amendments to Decision (EU) 2021/1764

Decision (EU) 2021/1764 is amended as follows:

(1)in Article 1, the second paragraph is replaced by the following:

‘This Decision establishes the funding programme for the association (the ‘Programme’) for the period from 1 January 2028 to 31 December 2034. It lays down the objectives of the Programme, the budget for the period from 2028 to 2034, the forms of Union funding and the rules for providing such funding as set out in Annex I’;

(2)in Article 3(5), point (b) is replaced by the following:

‘(b) to support and to cooperate with Greenland in addressing its major challenges such as the raising of its education level and economic diversification, and to contribute to the capacity of the administration of Greenland to formulate and implement national policies.’;

(3)Article 5 (2) is amended as follows:

(a)point (a) is replaced by the following

‘(a) the sustainable diversification of OCTs’ economies, including their further integration in world and regional economies, and in the specific case of Greenland, also the need to increase the skills of its labour force;’;

(b)point (e) is replaced by the following:

‘(e) the sustainable management of natural resources, including raw materials, as well as the conservation and sustainable use of biodiversity and ecosystem services;’;

(c) point (m) is replaced by the following:

‘(m) the development of regional cooperation in the Arctic, the Caribbean, the Indian Ocean, the Atlantic and the Pacific.’;

(d) point (n) is deleted;

(4)in Article 14(1), points (a) and (b) are replaced by the following:

‘(a)    an OCTs-EU forum for dialogue (the ‘OCTs-EU Forum’), which shall meet every two years to bring together OCTs’ authorities, representatives of the Member States and the Commission. Members of the European Parliament, representatives of the EIB and representatives of the outermost regions shall, where appropriate, be associated with the OCTs-EU Forum;

(b)    trilateral consultations between the Commission, the OCTs and the Member States to which they are linked, which shall be held on a regular basis. Those consultations shall be organised at least three times a year on the initiative of the Commission or at the request of OCTs and of the Member States to which they are linked. Member States shall be informed about the results of the consultations appropriately;’;

(5)Article 75 is replaced by the following:

‘Article 75

Budget

1.    The indicative financial envelope for the implementation of the Programme for the period 2028-2034 shall be EUR 999 000 000 in current prices.

2.    The amount referred to in paragraph 1 of this Article is without prejudice to the application of provisions providing for flexibility in the Council Regulation (EU/Euratom) …/…* [MFF Regulation], Regulation (EU) …/… of the European Parliament and of the Council ** [Global Europe] and Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council***.

3.    The financial envelope referred to in paragraph 1 and the amounts of additional resources referred to in paragraphs 4 and 5 may also be used for technical and administrative assistance for the implementation of the Programme such as preparatory, monitoring, control, audit and evaluation activities, information and communication activities, including corporate communication on the political priorities of the Union in the external area, and corporate information technology systems and platforms, and all other technical and administrative assistance, including the financing of staff and staff-related expenses incurred by the Commission for the management of the Programme at headquarters, Union delegations and Commission Offices.

4.    Member States, Union institutions, bodies and agencies, third countries, international organisations, international financial institutions, or other third parties, may make additional financial or non-financial contributions to the Programme. Additional financial contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d), or (e), or Article 21(5) of Regulation (EU, Euratom) 2024/2509.

5.    The cumulative net reflows stemming from the OCT Investment Facility set out in Article 3(3) of Annex IV to Decision 2013/755/EU shall constitute external assigned revenues to top-up the non-allocated fund referred to in Article 1(1), point (c), of Annex I to this Decision, from the moment they become available. Without prejudice to the decisions to be taken with respect to the subsequent Multiannual Financial Frameworks, after 31 December 2034, and until their depletion, the cumulative net reflows shall constitute contributions to the next OCT financing Programme which replaces this Programme.

_________

* Council Regulation (EU/Euratom) …/…* [MFF Regulation] (OJ L […], […], ELI: …).

** Regulation (EU) …/… of the European Parliament and of the Council** [Global Europe] (OJ L […], […], ELI: …).

*** Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/OJ).’;

(6)Article 76 is amended as follows: 

(a)point (a) is replaced by the following:

‘(a)    programmable aid’ means the non-repayable aid allocated to the OCTs in order to finance territorial and regional strategies when applicable or priorities set out in programming documents;’;

(b)point (g) is deleted;

(7)Article 80 is deleted;

(8)Articles 81 and 82 are replaced by the following:

‘Article 81

General principle

1.Unless otherwise specified in this Decision, the Programme shall be implemented in accordance with this Decision, Regulation (EU, Euratom) …/… 2024/2509, and, as appropriate, the following provisions of Regulation (EU) …/… [Global Europe]:

(a)Title II with the exception of Article 13(2), third subparagraph, Article 13(3), Article 19(1), Article 19(2), points (a) and (b), and Article 26(1);

(b)Article 29.

The eligibility rules set out in Article 20(1) and (4) to (12) of Regulation (EU) [Global Europe] shall apply to all actions financed under this Programme.

2.The rules and procedures concerning carry overs, annual instalments, repayments, revenue and recoveries from financial instruments financed under this Programme or its predecessors, and surpluses from the budgetary guarantees and financial assistance provisioned by this Programme or its predecessors, laid down in Article 22 of Regulation (EU) Global Europe shall apply to the implementation of the Programme.

3.Union support provided under this Programme in the form of loans shall be provided within the maximum amount referred to in Article 24(1) of Regulation (EU) [Global Europe].

A loan shall be made available to a Member State for the benefit of an OCT or, by way of derogation from article 223(1) of the Financial Regulation, to an OCT depending on the arrangements applicable between the OCT and the Member State to which this OCT is linked.

The Commission shall adopt decisions, by means of implementing acts, making available the loan amount to an OCT and setting out the availability period of the loan which shall not go beyond three years after the end of the multiannual financial framework. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 90(5). If that decision is part of an action plan or measure, Article 82 shall apply.

4.Where Union support under the Decision is provided in the form of a budgetary guarantee or a financial instrument, including where combined with non-repayable support in a blending operation, it shall be exclusively provided through the Global Europe delivery mechanism or ECF InvestEU Instrument and implemented in accordance with the applicable rules of the Global Europe delivery mechanism or ECF InvestEU Instrument through agreements concluded for that type of support under the Global Europe delivery mechanisms or ECF InvestEU Instrument.

Union support under the Programme in the form of a budgetary guarantee shall be provided within the maximum amount of the budgetary guarantee established by the Regulation (EU) …/… [Global Europe] or Regulation …/… (EU) [ECF].

Where the Programme makes use of the Global Europe delivery mechanism or ECF InvestEU Instrument, it shall provide the provisioning for the budgetary guarantee and the financing to financial instruments, including when combined with non-repayable support in the form of a blending operation.

5.Provisioning shall be constituted for loans made available to OCTs referred to in paragraph 3.

The provisioning rate shall be set at 9%.

The Commission shall review the provisioning rate under the first subparagraph every year in accordance with the assessment referred to in Article 41(5), point (g), of Regulation (EU, Euratom) 2024/2509 and in line with the Commission’s risk management framework.

The Commission is empowered to adopt delegated acts in accordance with Article 88 to amend the provisioning rate referred to in subparagraph 2.

Article 82

Adoption of multiannual indicative programmes, actions plans and measures

1.The Commission shall adopt, under this Decision, multiannual indicative programmes as referred to in Article 15 of Regulation (EU)…/… [Global Europe].

2.For countries and territories, and regions, where one single action is planned during the entire programming period, the multiannual indicative programme is replaced by an annual or multiannual action plan.

3.The programming documents, action plans and measures shall be adopted by means of implementing acts in accordance with the examination procedure referred to in Article 90(5).  

4.    The procedure referred to in paragraph 3 of this Article shall not be required for:

(a)    actions plans and individual measure for which the Union’s funding does not exceed EUR 2 000 000;

(b)    special and support measures for which the Union’s funding does not exceed EUR 5 000 000.’;

(9)in Article 83(2), point (d) is replaced by the following:

‘(d)    OCTs or Union financial intermediaries promoting and financing private and public investments in the OCTs;’;

(10)Article 84 is replaced by the following:

‘Article 84

Eligibility for regional financing

1.A regional allocation may be used for operations benefiting and involving either of the following entities:

(a)two or more OCTs regardless of their location;

(b)OCTs and the Union as a whole;

(c)one or more regional bodies of which OCTs are members;

(d)one or more OCTs regardless of their location and at least one of the following:

(i) one or more outermost regions referred to in Article 349 TFEU;

(ii) one or more ACP States and/or one or more non-ACP States or territories 52 ;

(iii) one or more regional bodies of which OCTs, or ACP States or outermost regions are members.

(iv) one or more entities, authorities or other bodies from at least one OCT, being members of an EGTC in accordance with Article 8(2).

2.The funding to enable participation of the ACP States, outermost regions and other countries and territories to OCT regional cooperation programmes shall be additional to funds allocated to the OCTs under this Programme.

3.The participation of ACP States, outermost regions and other countries or territories in actions established pursuant to this Programme shall be envisaged only to the extent that:

(a)equivalent provisions exist in the framework of relevant Union’s programmes or in the relevant funding programmes of third countries and territories not covered by Union programmes;

(b)the principle of proportionality is respected, taking into account the capacities of stakeholders, in particular their financial capacities under instruments of the Union for cooperation with other countries.’;

(11)Article 85 is amended as follows:

(a)paragraphs 1 and 2 are replaced by the following:

‘1.    Unless otherwise provided for in the relevant basic acts, natural persons from an OCT and, where applicable, the relevant public and private bodies and institutions in an OCT, shall be eligible to participate in and for funding from Union programmes under the same conditions as persons from and entities established in the Member State to which they are linked, subject to possible arrangements applicable to that Member State.

2.    The OCTs shall also be eligible for support under Union’s external financing instruments subject to the rules, objectives and arrangements of those programmes. The OCTs shall be eligible for support under Regulation (EC) No 1257/96. 53 non-governmental organisations established in OCTs shall be eligible for financing in accordance with Article 7 of Regulation (EC) No 1257/96.’;

(b)paragraph 4 is replaced by the following:

‘4.    The OCTs, with the support of relevant stakeholders, shall report to the Commission on their participation in the Union programmes, at mid-term and at the end of the period 2028 to 2034.’;

(12)Article 86 is deleted;

(13)in Article 88, paragraph 2 is replaced by the following:

‘2. The Commission shall be empowered to adopt delegated acts in accordance with Article 89 in order to amend Article 81(5).’;

(14)in Article 89, paragraph 2 is replaced by the following:

‘2. The power to adopt delegated acts referred to in Article 88 shall be conferred on the Commission for a period of validity of this Decision.’;

(15)Article 91 is deleted;

(16)Article 93 is amended as follows:

(a)paragraph 2 is replaced by the following:

‘2. This Decision shall not affect the continuation or modification of actions initiated pursuant to Decision 2013/755/EU and Decision (EU) 2021/1764 before its amendment by Decision (EU) …/… [the number of this Decision to be added by the OP] which shall continue to apply to those actions respectively until their closure.’;

(b)paragraph 4 is replaced by the following:

‘4. If necessary, appropriations may be entered in the Union budget beyond 2034 to cover the expenses provided for in Article 75(4) to enable the management of actions not completed by 31 December 2034.’;

(17)Annex I is amended in accordance with the Annex to this Decision.

Article 2
Entry into force and application

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2028.

Done at Brussels,

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE3

1.1.Title of the proposal/initiative3

1.2.Policy area(s) concerned3

1.3.Objective(s)3

1.3.1.General objective(s)3

1.3.2.Specific objective(s)3

1.3.3.Expected result(s) and impact3

1.3.4.Indicators of performance3

1.4.The proposal/initiative relates to:4

1.5.Grounds for the proposal/initiative4

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative4

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.4

1.5.3.Lessons learned from similar experiences in the past4

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments5

1.5.5.Assessment of the different available financing options, including scope for redeployment5

1.6.Duration of the proposal/initiative and of its financial impact6

1.7.Method(s) of budget implementation planned6

2.MANAGEMENT MEASURES8

2.1.Monitoring and reporting rules8

2.2.Management and control system(s)8

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed8

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them8

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)8

2.3.Measures to prevent fraud and irregularities9

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE10

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected10

3.2.Estimated financial impact of the proposal on appropriations12

3.2.1.Summary of estimated impact on operational appropriations12

3.2.1.1.Appropriations from voted budget12

3.2.1.2.Appropriations from external assigned revenues17

3.2.2.Estimated output funded from operational appropriations22

3.2.3.Summary of estimated impact on administrative appropriations24

3.2.3.1. Appropriations from voted budget24

3.2.3.2.Appropriations from external assigned revenues24

3.2.3.3.Total appropriations24

3.2.4.Estimated requirements of human resources25

3.2.4.1.Financed from voted budget25

3.2.4.2.Financed from external assigned revenues26

3.2.4.3.Total requirements of human resources26

3.2.5.Overview of estimated impact on digital technology-related investments28

3.2.6.Compatibility with the current multiannual financial framework28

3.2.7.Third-party contributions28

3.3.Estimated impact on revenue29

4.Digital dimensions29

4.1.Requirements of digital relevance30

4.2.Data30

4.3.Digital solutions31

4.4.Interoperability assessment31

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned 

1.3.Objective(s)

1.3.1.General objective(s)

1.3.2.Specific objective(s)

1.3.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

1.3.4.Indicators of performance

Specify the indicators for monitoring progress and achievements.

1.4.The proposal/initiative relates to:

 a new action 

 a new action following a pilot project / preparatory action 54  

 the extension of an existing action 

 a merger or redirection of one or more actions towards another/a new action

1.5.Grounds for the proposal/initiative

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section ‘added value of EU involvement’ is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone. 

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments

1.5.5.Assessment of the different available financing options, including scope for redeployment

1.6.Duration of the proposal/initiative and of its financial impact

 limited duration

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY

–    financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.

 unlimited duration

–Implementation with a start-up period from YYYY to YYYY,

–followed by full-scale operation.

1.7.Method(s) of budget implementation planned

 Direct management by the Commission

– by its departments, including by its staff in the Union delegations;

–    by the executive agencies

 Shared management with the Member States

 Indirect management by entrusting budget implementation tasks to:

– third countries or the bodies they have designated

– international organisations and their agencies (to be specified)

– the European Investment Bank and the European Investment Fund

– bodies referred to in Articles 70 and 71 of the Financial Regulation

– public law bodies

– bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees

– bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees

– bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act

–bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support.

Comments

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

2.2.Management and control system(s)

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)

2.3.Measures to prevent fraud and irregularities

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

·New budget lines requested

Estimated financial impact of the proposal on appropriations

3.2.1.Summary of estimated impact on operational appropriations 

–    The proposal/initiative does not require the use of operational appropriations

–    The proposal/initiative requires the use of operational appropriations, as explained below

3.2.1.1.Appropriations from voted budget

EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.3.Summary of estimated impact on administrative appropriations 

–    The proposal/initiative does not require the use of appropriations of an administrative nature

–    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below

3.2.3.1. Appropriations from voted budget

3.2.4.Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources

–    The proposal/initiative requires the use of human resources, as explained below

3.2.4.1.Financed from voted budget

Estimate to be expressed in full-time equivalent units (FTEs)

The staff required to implement the proposal (in FTEs):

Description of tasks to be carried out by:

3.2.5.Overview of estimated impact on digital technology-related investments

3.2.6.Compatibility with the current multiannual financial framework 

The proposal/initiative:

–    can be fully financed through redeployment within the relevant heading of the multiannual financial framework (MFF)

–    requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation

–    requires a revision of the MFF

3.2.7.Third-party contributions 

The proposal/initiative:

–does not provide for co-financing by third parties

–    provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

3.3.    Estimated impact on revenue 

– The proposal/initiative has no financial impact on revenue.

–    The proposal/initiative has the following financial impact:

–    on own resources

–    on other revenue

–    please indicate, if the revenue is assigned to expenditure lines

EUR million (to three decimal places)

For assigned revenue, specify the budget expenditure line(s) affected.

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

4.Digital dimensions

4.1.Requirements of digital relevance

N/A

4.2.Data

4.3.Digital solutions

4.4.Interoperability assessment

4.5.Measures to support digital implementation

(1)    COM/2025/570

(2)        Council Decision (EU) 2021/1764 of 5 October 2021.

(3)        Following the UK’s withdrawal from the EU on 31 January 2020, 12 UK OCTs left the association with the EU.

(4)        Except Adélie Land, one of the territories within the French Southern and Antarctic Lands (FSAL/TAAF), which is located in the content of Antarctic.

(5)        Atlantic: Saint Pierre and Miquelon (FR); Indian Ocean: French Southern and Antarctic Lands – FSAL/TAAF (FR); Arctic: Greenland (DK); Caribbean: Aruba, Bonaire, Curaçao, Saba, Sint Eustatius, Sint Maarten (all six NL), and Saint Barthélemy (FR); Pacific: French Polynesia, New Caledonia, Wallis and Futuna (FR).

(6)        The EU’s outermost regions (nine islands), linked to France, Spain, and Portugal, are an integral part of the EU: Guadeloupe, French Guiana, Réunion, Martinique, Mayotte and St Martin (France), the Azores and Madeira (Portugal), and the Canary Islands (Spain).

(7)

   The association partnership between the OCTs and the EU dates back to the Treaty of Rome (1957) and is enshrined in Part IV of the Treaty of the Functioning of the EU (TFEU – Articles 198 to 204). 

(8)    The citizens of the OCTs, except for those permanently residing in Greenland, have the right to vote in the European Parliament elections.

(9)    See footnote 2.

(10)    Council Decision 2014/137/EU of 14 March 2014 (financed under the EU budget).

(11)    Council Decision 2013/755/EU of 25 November 2013 (financed under the EDF, through direct contributions from EU Member States).

(12)    Greenland joined the European Economic Community in 1973 through Denmark’s membership, but it withdrew in 1985 (following a referendum) after securing Home Rule.

(13)    Regulation (EU) 2021/947 of 9 June 2021 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, pp. 1–78, ELI: http://data.europa.eu/eli/reg/2021/947/oj).

(14)    The Council acting unanimously on a proposal from the Commission and after consulting the European Parliament (Article 203 of the TFEU).

(15)    See footnote 13.

(16)    JOIN (2021) 24 of 16 September 2021.

(17)    JOIN (2021) 27 of 13 October 2021.

(18)    JOIN (2023) 17 of 7 June 2023.

(19)    Partnership Agreement between the European Union and its Member States, of the one part, and the Members of the Organisation of African, Caribbean and Pacific States, of the other part (OJ L, 2023/2862, 28.12.2023, ELI: http://data.europa.eu/eli/agree_internation/2023/2862/oj).

(20)    COM(2022) 198 l of 3 May 2022.

(21)    Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, pp. 1–3, ELI: http://data.europa.eu/eli/dec/2016/1841/oj).

(22)        ‘Transforming our world: the 2030 Agenda for Sustainable Development’: adopted at the United Nations Sustainable Development Summit on 25 September 2015 (A/RES/70/1).

(23)        ‘Sendai Framework for Disaster Risk Reduction (DRR)’: adopted on 18 March 2015 and endorsed by the United Nations General Assembly on 3 June 2015 (A/RES/69/283).

(24)    ‘The Kunming-Montreal Global Biodiversity Framework’: adopted in the fifteenth meeting of the Conference of the Parties (COP 15) to the Convention on Biological Diversity (CBD) on 19 December 2022.

(25)    ‘Addis Ababa Action Agenda of the Third International Conference on Financing for Development’, adopted on 16 June 2015 and endorsed by the United Nations General Assembly on 27 July 2015 (A/RES/69/313).

(26)    ‘Council of Europe Convention on preventing and combating violence against women and domestic violence’, (CETS No. 210) entered into force on 1 August 2014, https://www.coe.int/en/web/conventions/full-list?module=treaty-detail&treatynum=210 .

(27)    ‘The Pact for the Future’, adopted by the United Nations General Assembly on 22 September 2024 (A/RES/79/1).

(28)    Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank ‘The Global Gateway’ (JOIN (2021) 30 of 21 December 2021.

(29)    Regulation (EU) No…/… of the European Parliament and of the Council on establishing the European Competitiveness Fund (‘ECF’), including the specific programme for defence research and innovation activities, and repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/696, (EU) 2021/697, (EU) 2021/783, (EU) 2023/588, (EU) 2023/1525, (EU) 2023/2418, (EU) (EDIP) (OJ L […], […], ELI: …).…

(30)    European Commission: Directorate-General for International Partnerships, McKellar, L., Massey, C., Smaïl, T., Bellot Le Hellidu, S. et al., European Union's external financing instruments (2014-2020 and 2021-2027). Volume I, Synthesis report, Publications Office of the European Union, 2024. https://data.europa.eu/doi/10.2841/05549 .

(31)        The Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI-GE); the Instrument for Pre-Accession Assistance III (IPA III); the DOAG; and the European Instrument for International Nuclear Safety Cooperation (INSC).

(32)        DOAG merges the former Greenland Decision (see footnote 8) with the last OAD (see footnote 9) as part of the simplification effort under the 2021-2027 MFF.

(33)    COM(2022) 287 of 15 June 2022, COM(2023) 474 final of 02 August 2023, COM (2024) 437 final of 04 October 2024, COM (2025) 334 final of 27 June 2025.

(34)    Programme Performance Statements (Overseas Countries and Territories, including Greenland) of 2022, 2023, and 2024: Decision on the Overseas Association, including Greenland - Performance - European Commission .

(35)     Greenland 2021/AGILE REPORT/ | Public Expenditure and Financial Accountability (PEFA) .

(36)     French Polynesia 2022 | Public Expenditure and Financial Accountability (PEFA) .

(37)     St Pierre and Miquelon 2022 /AGILE REPORT/ | Public Expenditure and Financial Accountability (PEFA) .

(38)        Council Decision 2014/137/EU of 14 March 2014.

(39)    Council Decision 2014/137/EU of 14 March 2014.

(40)    Council Decision 2013/755/EU of 25 November 2013.

(41)    [Performance Regulation]

(42)    [Performance Regulation]

(43)    OJ C […], […], p. […].

(44)    Council Decision (EU) 2021/1764 of 5 October 2021 on the association of the Overseas Countries and Territories with the European Union including relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other (Decision on the Overseas Association, including Greenland) (OJ L 355, 7.10.2021, p. 6, ELI: http://data.europa.eu/eli/dec/2021/1764/OJ).

(45)    Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank - The Global Gateway (JOIN/2021/30 December 2021).

(46)    Regulation (EU) No…/… of the European Parliament and of the Council on establishing the European Competitiveness Fund (‘ECF’), including the specific programme for defence research and innovation activities, and repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/696, (EU) 2021/697, (EU) 2021/783, (EU) 2023/588, (EU) 2023/1525, (EU) 2023/2418, (EU) (EDIP) (OJ L […], […], ELI: …).

(47)    Regulation (EU) No…/… of the European Parliament and of the Council on establishing the Global Europe (OJ L […], […], ELI: …).

(48)    [Performance Regulation]

(49)    Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/OJ).

(50)    OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.

(51)    Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13, ELI:  http://data.europa.eu/eli/reg/2011/182/oj ) .

(52)    The term ‘territories’ means the 12 UK OCTs which were listed in Annex II to the TFEU at the time of the notification received by the European Council on 29 March 2017 of the UK’s withdrawal from the European Union and Euratom based on Article 50 TEU.

(53)    Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid (OJ L 163, 2.7.1996, p. 1, ELI: http://data.europa.eu/eli/reg/1996/1257/OJ).

(54)    As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.

(55)    Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

(56)    The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.

(57)    The appropriations for “Other administrative expenditure” will be filled in at a later stage.

(58)    The appropriations for “Other expenditure of an administrative nature” will be filled in at a later stage.

(59)    The staff will be financed from the Euratom R&T Programme.

(60)    As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20% for collection costs.

EUROPEAN COMMISSION

Brussels, 3.9.2025

COM(2025) 599 final

ANNEX

to the

EMPTY

Proposal for a









COUNCIL DECISION









amending Decision (EU) 2021/1764 on the Association of the Overseas Countries and









Territories with the European Union including relations between the European Union









on the one hand, and Greenland and the Kingdom of Denmark on the other

{SWD(2025) 625 final} - {SWD(2025) 626 final}

ANNEX

Annex I is amended as follows:

(1) the title is replaced by the following:

‘Union funding’;

(2) Article 1 is replaced by the following:

‘Article 1

Allocation principles

The Union funding provided under this Decision shall respect the Union’s vision, its strategic orientations and priorities and shall be allocated based on the following principles:

(a) The territorial (bilateral) and regional programmable support for the long-term development of all the OCTs, in particular shall finance the initiatives referred to in the programming document. Where appropriate, the programming document shall pay particular attention to actions aimed at strengthening governance and the institutional capacities of the beneficiary OCTs and, where relevant, the likely timetable of the envisaged actions.

The amount for the territorial (bilateral) cooperation shall be allocated on the basis of the specificities, needs, development level and performance of the OCTs in accordance with a limited set of specific criteria, taking into account the population, where relevant, Gross Domestic Product (GDP), poverty and inequality, the level of previous allocations, the OCTs’ absorption capacities, exceptional situation and constraints due to the geographical isolation of OCTs as mentioned in Article 9.

The amount for regional cooperation shall be implemented in coordination with Article 7 of this Decision, in particular regarding the areas of mutual interest referred to in Article 5 of this Decision and through consultation via the instances of the EU-OCTs partnership referred to in Article 14 of this Decision. Coordination shall be sought with other relevant Union financial programmes and instruments, such as those covering the cooperation with relevant ACP and non-ACP states and territories as well as the outermost regions referred to in Article 349 TFEU.

(b) A non-allocated fund for all the OCTs, shall inter alia:

–(i) ensure an appropriate response of the Union in the event of unforeseen circumstances;

–(ii) address new needs or emerging challenges, such as migratory pressure at the Union’s or its neighbours’ borders;

–(iii) promote new international initiatives and priorities.

2. The Commission, following an assessment of the implementation of this Decision, may decide on the re-allocation of any non-committed funds mentioned in this Article, including to the territorial (bilateral) and regional allocations.’;

(3) Article 3 is deleted.]