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European Union Instruments In order to implement the financial framework, the European Union set up a number of instruments. In this paper we will refer only to those related to the EU external action: Thematic Instruments10:

Geographic instruments11

“Aid beyond 2015”: What role for Europe in the global aid architecture? CSOs perspectives As 2015 is the deadline for achieving the MDGs and the entire aid architecture will change, the new Multiannual Financial Framework should be more focused on eradicating poverty. The new development agenda should be driven by important changes, as it is emphasized in the Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda12: “leave no one behind, put sustainable development at the core, transform economies for jobs and inclusive growth, build peace and effective, open and accountable institutions for all, forge a new global partnership”. In October 2010 CONCORD has set up the MFF Taskforce in order to follow-up the negotiations regarding the MFF 2014-2020 and to make sure that European civil society's position on foreign and development policies and funding is taken into account13. CONCORD has had a very important role in defending the proper allocation for those instruments focused on development, humanitarian aid, democracy and human rights and strongly supported to allocate 70% of Heading 4 spending on these. Taking into consideration the post 2015 development agenda, is even more important that the EU ensures its commitments for eradicating poverty. Useful weblinks: CONCORD - www.concordeurope.org AidWatch Report - aidwatch.concordeurope.org The Romanian NGDO Platform, FOND – www.fondromania.org EU Donor Atlas - http://development.donoratlas.eu EU Budget and External Cooperation - http://ec.europa.eu/europeaid/how/finance/mff/eu-budget_en.htm Aid Effectiveness, Organisations for Economic Co-operation and Development – www.oecd.org/dac

INFORMATION BULLETIN

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http://ec.europa.eu/europeaid/how/finance/thematic_en.htm http://ec.europa.eu/europeaid/how/finance/geographic_en.htm A NEW GLOBAL PARTNERSHIP: ERADICATE POVERTY AND TRANSFORM ECONOMIES THROUGH SUSTAINABLE DEVELOPMENT, The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda,http://www.beyond2015.org/sites/default/files/HLPReport.pdf 13 Concordeurope.org/Working Structures 11

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This material is part of the project financed by CONCORD (Support to National Platforms for AidWatch/MFF) implemented by the Romanian NGDO Platform – FOND, between May-October 2013. The views expressed in this publication do not necessarily reflect the opinion of CONCORD. FOND is an active member of the European NGO Confederation for Relief and Development – CONCORD, founding member of the International Forum of National NGO Platforms and represents the international coalition Global Call to Action Against Poverty (GCAP) in Romania (www.fondromania.org) The Romanian NGDO Platform – FOND www.fondromania.org www.blackseango.org Contact Person: Adriana Zaharia, Communication Coordinator adriana.zaharia@fondromania.org office@fondromania.org FOND is a representative, recognized and active platform, both at national and international level. Its mission is to support the development and implementation of a coherent and effective policy of Romania in the fields of international development cooperation and humanitarian aid, to increase the capacity of member organizations to educate the general public on development cooperation by implementing projects and specific programs, networking, training sessions, research, public policy and advocacy activities.

The Multiannual Financial Framework - MFF, 2014 - 2020 An European Union budget for the Global World


Information Bulletin

The Multiannual Financial Framework - MFF. An EU budget for the Global World

This paper provides an overview on the Multiannual Financial Framework process 2014-2020, emphasizing how the financial instruments concerning development cooperation are shaped and their influence on the EU's partners in developing countries. In today's increasingly globalized world, the consequences of our actions have an impact not only on the people living in developing countries, but on all of us. Communities around the world are affected by decisions made by others, including institutions, international organizations, decision makers or other stakeholders such as the European Union. The EU is a very important actor in financing for development, being the world's leading donor working with partner countries across the globe1.

which will affect the lives of millions of people around the world. The EU's budget could have a significant impact for the global aid architecture. Development cooperation – one of the most important instruments of the EU and its members plays “a catalytic and vital role in supporting poverty eradication, social protection, economic growth and sustainable development”, as mentioned at the Fourth High Level Forum on Aid Effectiveness, Busan, 20112. EU member states agreed to reach the target of Official Development Assistance (ODA) of 0.7% of GNI and 0.33% for the EU 13 (+Croatia) newest member countries by 2015. As the graphic below shows3, there is a serious gap between the expected results for 2015 and the members' performances, only some member states reaching their goals.

A crucial moment this year is voting the new Multiannual Financial Framework for the next seven years, a decision

Gap between 2015 targets and 2011 results 1.02 0.99

Sweden Luxembourg

0.86

Denmark

0.78

Netherlands

0.56 0.53 0.52 0.52 0.46 0.40

UK Belgium Finland Ireland France Germany Portugal Spain Austria Italy Greece Malta Cyprus Slovenia Lithuania Czech Republic Estonia Hungary Bulgaria Slovak Republic Romania Poland Latvia

0.29 0.29 0.27 0.19 0.11 0.25 0.16 0.13 0.13 0.13 0.12 0.11 0.09 0.09 0.09 0.08 0.07

The 2015 target for achieving the Millennium Development Goals (MDGs) is also approaching. Therefore, the new financial framework is even more important to set up the adequate resources to fight against extreme poverty in a coherent and effective manner. Although there are many documents which state development cooperation and poverty eradication as a priority for EU external action (the Lisbon Treaty - 20094, Agenda for Change - 20115), there is still a need for effective involvement of all relevant actors in supporting the least developing countries – governments, civil society organizations, local authorities, etc. FOND – The Romanian NGDO Platform has been involved since 2007 in the development cooperation field, having as mission to support Romania's engagement as ODA donor by implementing projects for strengthening the capacity of its member NGOs, building international partnerships within the EU and broader, the wider Black Sea Region, Balkans, Africa, Latin America and Middle East. FOND has also been involved in elaborating the country page of the European AidWatch report (launched by CONCORD's AidWatch Working Group), contributing to monitoring and advocating on the quality and the quantity of aid provided by EU member states and the European Commission (aidwatch.concordeurope.org).

An introduction to the MFF process and why it is important

The EU promote stability, security and prosperity in its neighbourhood and emphasized that aid must be genuinely focused on development priorities and the poorest populations7. In 2013, the EU institutions have finally reached an agreement on the EU's future budget for the next seven years. This comes after intense negotiations with EU member states and input from civil society organizations' involvement to ensure that the European Union meet its commitments. However, the proposed budget for the EU's external action, which includes development and humanitarian aid, has suffered significant cuts. As we can see from the graphic above, development cooperation, which is included in the “Global Europe” heading, is just one budget area, among other EU priorities. Having in mind the postMDGs perspective and the engagement for eradicating poverty, the EU should be more supportive in terms of reaching its ODA commitments. The entire process has started in June 2011, when the European Commission presented the Communication “A budget for Europe 2020” to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. In February 2013, at the European Summit, MS issued their position which was adopted by the EP one month later. The MFF negociations were discussed in May by the Presidents of the European Parliament and the Commission and the Irish Prime Minister when it was agreed that the negociations should focus on: – Flexibility of the EU budget; – A revision clause of the MFF deal, half-way through;

Every seven years, the European Union designs the framework regulating its annual budget which sets the maximum amount of spendings in the budget each year. The multiannual financial framework translates the Union's policy priorities in financial terms over a period of 7 years. The key policy areas, called headings include: • Smart and Inclusive Growth 0.7

• Sustainable Growth: natural resources • Security and Citizenship • Global Europe • Administration *EDF and Emergency reserve – outside the EU budget

– Future own resources of the EU budget; – Unity of the EU budget. After the EP formal approval, the MFF must be adopted by the Council8. *according to the European Council, the 2014-2020 budget amounts to 960 billion euros. “As regards heading 4 ("global Europe"), the European Council underpinned its determination to develop the role of the EU as an active player on the international scene. The expenditure ceiling under this heading has been set at EUR 58.70 billion”9. By the end of this year, the programming phase will be completed.

Budget 2013 (€150,9 bilion) SUSTAINABLE GROWTH 46.6% EU AS A BLOBAL PLAYER 6.4%

0.33

CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE 1.4%

RURAL DEVELOPMENT, ENVIRONMENT AND FISHERIES 10.7%

NATURAL RESOURCES OVERALL 39.8%

Source: OECD DAC and the 2012 EU Accountability Report of Financing for Development

MARKET RELATED EXPENDITURE AND DIRECT AIDS 29.1%

ADMINISTRATION 5.6%

Source: donoratlas.eu

Source : European Commission/EuropeAid, Budget 2013

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EU Donor Atlas 2012, http://development.donoratlas.eu/ BUSAN PARTNERSHIP FOR EFFECTIVE DEVELOPMENT COOPERATION FOURTH HIGH LEVEL FORUM ON AID EFFECTIVE NESS BUSAN, REPUBLIC OF KOREA, 29 NOVEMBER -1 DECEMBER, 2011 http://www.oecd.org/dac/effectiveness/49650173.pdf 3 http://development.donoratlas.eu/infographics/Accountability%20-%20Infographic%20-%202012.pdf 2

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http://europa.eu/lisbon_treaty/index_en.htm http://ec.europa.eu/europeaid/news/agenda_for_change_en.htm EU Budget and External Cooperation, http://ec.europa.eu/europeaid/how/finance/mff/eu-budget_en.htm 7 Development and Cooperation – EuropeAid, http://ec.europa.eu/europeaid/how/ensure-aid-effectiveness/index_en.htm 8 http://ec.europa.eu/budget/mff/commission-proposals-for-the-multiannual-financial-framework-2014-2020/index_en.cfm 9 http://www.consilium.europa.eu/special-reports/mff/summary-of-the-european-council-agreement 5 6

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