European Neighbourhood Partnership Instrument (ENPI)

The Financial Mechanism

Visit the ENPI website

CES-MED is a programme financed by the European Neighbourhood Partnership Instrument (ENPI), which is the main financial mechanism through which assistance is given to the European Neighbourhood Policy countries. ENPI has been operational since 1 January 2007 and is the main source of financing for the 17 partner countries (ten Mediterranean and six East European countries, plus Russia). It replaces earlier financing instruments including TACIS for the East and MEDA to the South and builds most directly on the MED-PACT programme.

European Neighbourhood Policy (ENP) - The countries

The European Neighbourhood Policy (ENP) covers 10 countries in the South (Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, and Tunisia) and 6 in the East (Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine plus Russia. Of these,

Presentation of ENPI

The ENPI - Supporting Reform

The European Neighbourhood and Partnership Instrument  – known as the ENPI – is the main financial mechanism through which assistance is given to the European Neighbourhood Policy (ENP) Partner Countries, as well as Russia. It is the cooperation instrument, managed by DG EuropeAid, through which decisions taken on a political level are turned into actions on the ground.

Operational since January 2007, the ENPI has replaced the MEDA instrument that was supporting the Euro-Med Partnership and the TACIS instrument for the Eastern neighbours, as well as other financial mechanisms.

This assistance aims at building relations, supporting the reform efforts undertaken by the partners themselves, and promoting the priorities agreed with each country after consultation with the governments and other actors. Assistance priorities can be found in numerous documents, including:

  • The country reports.
  • The National Indicative Programmes (available from here)
  • Priorities identified in the Action Plans.
  • Detailed Annual Programmes East.
  • Detailed Annual Programmes South.
  • For Russia all relevant links can be found here.
  • The overarching aim of the ENPI  is to create an area of shared values, stability and prosperity, enhanced cooperation and deeper economic and regional integration by covering a wide range of cooperation areas.

It is a more flexible and policy driven mechanism, as the allocation of funds depends on a country’s needs and absorption capacity and its level of implementation of agreed reforms.

As from 2014 the ENPI will be replaced by the European Neighbourhood Instrument (ENI), which will provide increased support to 16 partner countries to the East and South of the EU’s borders.

The state of relations and documents for each partner country can be reached from here and for Russia here and here.  Reference documents can be found here and for Russia here.

Participation

The 16 ENPI Partner Countries are:

  • ENPI South - Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinian Territory, Syria, Tunisia
  • ENPI East - Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Russia
  • Russia is receiving funding from the ENPI even though relations with this neighbour country are not developed through the ENP, but through a strategic partnership covering four “common spaces”.
  • Libya has an observer status in the Euro-Mediterranean Partnership and is eligible for funding under the ENPI. Negotiations for an EU-Libya Framework Agreement got underway in November 2008.

Objectives

According to the ENPI regulation, the objective of the ENPI is to provide community assistance for the development of an area of prosperity and good neighbourliness involving the European Union and the partner countries and territories.

Community assistance shall promote enhanced cooperation and progressive economic integration between the European Union and the partner countries and, in particular, the implementation of partnership and cooperation agreements, association agreements or other existing and future agreements. It shall also encourage partner countries’ efforts aimed at promoting good governance and equitable social and economic development.

The Funding

The overall allocation for the ENPI, which is increased compared to the past, amounted to almost €12 billion for the period 2007-2013.

The largest percentage of ENPI funds will be used for bilateral actions, that is country initiatives. Funds are also allocated to the two ENPI regions and regional and cross-border initiatives and mechanisms. The funding for regional programmes allocated to the two regions for the period 2011-2013 is: ENPI South €288 million; ENPI East €348.57 million (See regional funding below for more detail).

A number of innovative ENPI components and tools, give further substance to the EU aim of avoiding new dividing lines:

  • Cross Border Cooperation (CBC) under which it finances joint programmes bringing together regions of EU member states and partner countries sharing a common border. CBC is co-financed by the European Regional Development Fund (ERDF). Two types of programmes are established: bilateral programmes covering a common land border (or short sea crossing), and multilateral programmes covering a sea basin.
  • The Governance Facility which provides additional resources to those partners that have proved their will to carry forward essential reforms agreed in their Action Plans. An indicative €50 million per year have been set aside for this component.
  • The Twinning initiative and the TAIEX (Technical Assistance and Information Exchange) instrument which encourage cooperation between the public administration of a partner country and the equivalent institution of a member state, aiming to upgrade and modernize institutions in the beneficiary states.
  • In addition, the Neighbourhood Investment Facility (NIF) funds projects of common interest, focusing primarily on energy, environment and transport. The EC allocated €700 million to the Facility, for the period 2007-2013, and asked Member States to gradually match this contribution, to maximize the leverage of loans.

An Inter-Regional Programme (IRP) has also been established by EuropeAid to support partners in the ENPI Southern and Eastern regions, as some aid activities can be managed more efficiently and flexibly at inter-regional level. Some €757.6 million have been set aside for the IRP for the period 2011-2013.

In addition, the European Investment Bank assists the partner countries.

In the South, it does so through its Facility for Euro-Mediterranean Investment and Partnership (FEMIP), which brings together the whole range of services provided by the EIB to assist the economic development of the Mediterranean partner countries. Operational since October 2002, FEMIP is now a key player in the financial partnership between Europe and the Mediterranean, and has invested €10 billion between October 2002 and December 2009. In the East, the EIB has earmarked €3.7 billion for the partner countries for the period 2007-2013. 

Tenders under EC assistance programmes are open to interested parties from the EU Member States, the candidate and potential candidate countries and from the neighbourhood countries themselves, and are awarded in line with standard EC procurement rules.

Regional Funding

EU cooperation with partners on a regional basis, as well as cooperation amongst the partners themselves, is considered by the EU as an important political objective. It complements national assistance programmes, addresses challenges with a regional dimension and promotes cooperation amongst partners on issues of mutual interest.

Issues such as protection of the environment, tackling sea pollution, enhancing the role of women, fighting organized crime and terrorism, are cross-cutting and have no

  • For the ENPI South, funding of about €288 million has been earmarked for 2011-2013.
  • For the ENPI East, funding of €348.57 million has been earmarked for the period 2011- 2013.
  • The main co-operation fields with the Eastern partners are: Transport; Energy;Sustainable management of natural resources; Border and migration management, the fight against transnational organized crime and customs;People-to-people activities; elimination of landmines, explosive remnants of war, small arms and light weapons.

The main cooperation fields with the South were defined since the start of the Euro-Med Partnership and the Barcelona declaration. They cover: Political and Security Dialogue (justice, freedom & security, migration, political dialogue); Economic and Financial Partnership (economy, energy,environment, information society, transport); Social, Cultural and Human Partnership (audiovisual & media, culture, education & training, gender issues, youth, civil society and local authorities).

From the ENPI to the ENI: from 2014, the new European Neighbourhood Instrument

In the context of the renewed approach to the European Neighbourhood Policy (ENP) outlined on 25 May 2011, the ENPI will from 2014 be replaced by the European Neighbourhood Instrument (ENI), which will provide increased support to 16 partner countries to the East and South of the EU’s borders.

The proposed ENI budget for the period 2014-2020 is €18.2 billion, 40 per cent up on the amount available under the ENPI from 2007-2013.

The new instrument will be increasingly policy-driven and provide for greater differentiation, more flexibility, stricter conditionality and incentives for best performers, reflecting the ambition of each partnership.

Building on the achievements of the ENPI,the ENI will contribute to strengthening bilateral relations with partner countries and bring tangible benefits to both the EU and its partners in areas such as democracy and human rights, the rule of law, good governance and sustainable development.

The ENI will continue to provide the bulk of funding to the European Neighbourhood countries, essentially through bilateral, regional and cross border co-operation programmes.

Announcing the proposed new Instrument in December 2011, EU Commissioner for Enlargement and Neighbourhood Policy Štefan Füle said: "Through the new European Neighbourhood Instrument support to our neighbours will become faster and more flexible; allowing for increased differentiation and incentives for best performers. The new ENI is the complement of our more ambitious approach towards our neighbours that we outlined in the Joint Communication on the ENP released in May 2011. It is part of the overall response to the evolution of our relationships with our neighbours and also a direct answer to the revolutionary movements to the south of the EU."