Report on the Union’s facility providing medium-term financial assistance for Member States’ balances of payments

Pursuant to Council Regulation (EC) No 332/2002 (the ‘BoP Regulation’), the BoP Instrument was created to provide Union medium-term financial assistance to Member States which have not adopted the euro (Member States with a derogation) and are experiencing, or are threatened with, difficulties in their balance of payments. This financial assistance is either in the form of an EU loan or a credit line.

Furthermore, the BoP Regulation stipulates that the Council should regularly examine the extent to which the instrument still serves its purpose in terms of its principle, arrangements and ceiling. The Council examination should be made on the basis of a report from the Commission and after the Economic and Financial Committee (EFC) has delivered an opinion.

Since the last revision in May 2009, the instrument has proven its effectiveness given that beneficiary Member States have seen the sustainability of their balance of payments improve rapidly and have quickly regained access to market-based financing.