Financial instruments and legal bases
The European Union's current budgetary period (2007-2013) started on 1st of January 2007. The entire funding scheme differs from the previous one and new programmes have been launched as part of the reform of the EC external assistance.
The EU has created five financial instruments for channelling external aid during the financial period 2007–13. The European Development Fund, not part of the EU budget, supplements these instruments.
Development Cooperation Instrument (DCI)
This instrument replaces the array of geographical and thematic instruments created over time. It encompasses, first and foremost, cooperation with partner countries and regions selected geographically, namely: Latin America, Asia, Central Asia, the Middle-East and South Africa. The second DCI component consists of the five thematic programmes :
The third pillar of the DCI regulation is a series of secondary measures favouring the 18 ACP signatories to the sugar protocol, which aim to provide support during their adjustment phase in the face of new market conditions linked to the reform of Union arrangements regarding sugar.
European Development Fund (EDF)
Based on the Cotonou Agreement, the linchpin of European Union cooperation with the African, Caribbean and Pacific (ACP) countries, the European Development Fund provides aid for 79 ACP partner countries of the Union and for the overseas countries and territories of member states. The tenth European Development Fund entered into force in January 2008.
Instrument for Pre-accession Assistance (IPA)
This instrument provides assistance to countries directly in line to become members of the European Union (such as Macedonia, Turkey and Croatia) and the Balkan countries (Albania, Serbia, Kosovo, Bosnia-Herzegovina and Montenegro).
European Neighbourhood and Partnership Instrument(ENPI)
This instrument directs European Union aid to 17 countries: Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, the Palestinian National Authority, Russia, Syria, Tunisia and Ukraine. It is a specific component of transborder cooperation which covers the border regions of the member states of the European Union.
European Instrument for Democracy and Human Rights (EIDHR)
The EIDHR contributes to the establishment of democracy, the rule of law, and the protection of human rights and basic freedoms. It is designed to complement the other instruments available for ensuring the implementation of related Union policies, which range from political dialogue to diplomatic procedures, via various instruments of financial and technical cooperation, including the geographical and thematic programmes. It also supplements the interventions, more associated with crisis situations, part of the new Instrument for Stability.
Instrument for Stability (IfS)
The Instrument for Stability aims to strengthen security in partner countries where there is an actual or emerging crisis (short-term component). It also guarantees security in stable countries (long-term component).
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