Explanatory Memorandum to COM(2007)410 - Financial Regulation applicable to the 10th European Development Fund

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dossier COM(2007)410 - Financial Regulation applicable to the 10th European Development Fund.
source COM(2007)410 EN
date 16-07-2007
The ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000 between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, was revised in Luxembourg on 25 June 2005.

The financial framework necessary to implement this Partnership Agreement for the period 2008 to 2013 was adopted by the Council and enshrined in the Internal Agreement of 17 July 2006. It covers commitments beginning on 1 January 2008 for a period of six years. In order to implement this financial framework, the Internal Agreement notably establishes a 10th European Development Fund (EDF) and foresees in its Article 10  i that a financial regulation should be adopted before the entry into force of the ACP-EC Partnership Agreement.

The present Commission communication aims at presenting a proposal for the financial regulation applicable to the 10th EDF. It has been aligned as far as possible with the provisions of the Financial Regulation applicable to the general budget of the European Communities as revised on 13 December 2006 (General Financial Regulation), while taking into account the specificity of the EDF whose financing remains outside the EU budget.

Contrary to the general Financial Regulation, there are no implementing rules completing the financial regulation applicable to the EDF. Nethertheless, some issues which do not necessarily need to be dealt with in extenso in the financial regulation deserved clarification. Since this clarification already exists in the implementing rules applicable to the general Financial Regulation, and in order to avoid repetition, the Commission proposes that, when necessary, some articles directly refer to the implementing rules of the general Financial Regulation.

As provided for in Article 10  i of the Internal Agreement, the Commission's proposal shall be submitted to the Council for adoption, as well as to the Court of Auditors and the European Investment Bank for an opinion.

Main changes compared to the Financial Regulation applicable to the 9th EDF:

1. Alignment of the structure on the General Financial Regulation.

2. Simplification: provisions concerning Member States contributions which are drafted in detail in the Internal Agreement do not need to be repeated in the Financial Regulation. Provisions which mirrored some articles of the implementing Rules of the general Financial Regulation laid down in Regulation (EC, Euratom) 2342/2002 have been replaced by a reference to the concerned article(s) of that Regulation. Moreover, provisions which mirror some articles of the general Financial Regulation and need further clarification or implementing rules have been completed with a reference to the applicable articles of Regulation (EC, Euratom) 2342/2002.