Commission Financing Decision

The Commission Financing Decision is a pivotal phase in the IPA III process.

Decision-making: Once the Programming stage concludes, the European Commission officially adopts the Financing Decision. This decision consists of the Commission Implementing Decision accompanied by detailed Action Documents or Operational Programme (OP).

Collaboration is Key: The European Commission's DG NEAR drafts these decisions in tight collaboration with EU Delegations, NIPAC, and other relevant entities within the Commission.

Timeline: It is crucial to remember that all financing agreements need to be concluded by 31 December of year n+1, which means one year after the global budgetary commitment is established. This is a strict deadline, with no exceptions.

Financing Agreement

Purpose: The Financing Agreement outlines the terms under which IPA III assistance is offered. This includes methods of implementation, deadlines, and rules on expenditure eligibility.

Signing the Agreement: By signing, the IPA III beneficiary agrees to the assistance's terms. Based on this agreement, beneficiaries might participate in fund implementation.

Roles & Responsibilities: If funds are managed indirectly by an IPA III beneficiary country, the agreement details responsibilities in alignment with Article 158 of the Financial Regulation.

Acknowledgment: Even if the beneficiary is not tasked with budget implementation, this agreement is still signed. It recognises EU support and emphasises ownership of the development effectiveness principle.

Timeline and Amendments: After the Financing Agreement is signed, it may undergo amendments, influenced by decisions from the Commission or proposals by the beneficiary country. Every Financing Agreement states the amendment rules, including the delay before the amendment becomes effective, which may span several months.

Monitoring & Amendments: Beneficiaries should monitor and report savings during the contracting phase. This could lead to fund reallocations and, subsequently, amendments to the Financing Agreement. To ensure smooth transitions, proposals impacting the Financing Agreement should be submitted to the Commission at least six months before the intended amendment date.