Report from the Commission on the implementation of macro-financial assistance to third countries in 2012

This report provides a general overview of the implementation of the EU's macro-financial assistance (MFA) to third countries in 2012.

MFA, as part of the EU's external assistance framework, is an instrument designed for countries geographically, economically and politically close to the EU, addressing exceptional external financing needs in the form of balance of payments support. Its objective is to strengthen macroeconomic and financial stability in candidate and potential candidate countries and in countries in the European neighbourhood, while encouraging the implementation of appropriate structural reforms. It complements and is conditional on the existence of an adjustment and reform programme agreed with the IMF. MFA takes the form of either loans, for which the Commission borrows the necessary funds in capital markets and on-lends them to the beneficiary country, and/or, in specific circumstances, grants, financed by the EU budget.

The year 2012 was characterised by the continuous implementation of existing MFA operations, while no new MFA operation was approved by the two co-legislators, the Council and the European Parliament. At the same time, the co-legislators continued discussions on the new Framework Regulation on MFA, which was proposed by the Commission in July 2011, without however reaching an agreement. Eventually, in May 2013, the Commission decided to withdraw its proposal, as the agreement that was emerging between the two co-legislators meant that the objectives set by the Commission in its proposal would not have been met.

This report is prepared in accordance with the various Council and joint European Parliament and Council decisions regarding MFA operations. It follows the reports presented in the previous years. It is accompanied by a Commission Staff Working Document providing more detailed information on and analysis of the macroeconomic context and implementation of individual MFA operations.

• Primary Source

EUR-Lex: COM(2013)426: Follow the progress of this report through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2013:426:FIN

EUR-Lex: SWD(2013)211: Background analysis per beneficiary http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2013:211:FIN

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