INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA)
The Instrument for Pre-Accession Assistance (Instrument for Pre-Accession Assistance – IPA) is a new financial instrument that the European Union has been applying since 2007 for the countries of the Western Balkans and Turkey. In essence, IPA forms part of the European Union’s External Relations package, created with the aim of rationalizing, simplifying procedures, improving the coherence and coordination of EU activities towards potential candidate countries and candidate countries.
With the help of IPA, all pre-accession assistance is placed within a single framework with a unified regulation for both candidate countries and potential candidate countries. IPA replaces previous assistance programs such as: Phare, ISPA, SAPARD and CARDS.
The objectives of the IPA programme are to provide assistance to candidate and potential candidate countries in:
– aligning national legislation and implementing the EU acquis
– preparing for the use of Cohesion Funds.
Also, IPA aims to gradually transfer responsibility from the European Commission to the administration of the beneficiary country, i.e. to establish a decentralized management system (DIS) for EU funds—meaning that each beneficiary country must set up its own institutions to manage these funds.
The European Commission requires candidate countries for membership to take responsibility for managing EU pre-accession funds and to increase their ownership of the fund management process, so that they are gradually able to manage funds independently, which is necessary for EU accession.
IPA I (2007 - 2013)
The Instrument for Financial Assistance (IPA) for the budget period 2007 – 2013 was established through two regulations.
IPA I is implemented through 5 components:
• Component I (Transition Assistance and Institutional Building – also known as the National Programme) which is available to candidate countries and potential candidate countries;
• Component II (Cross-border Cooperation) which is available to candidate countries and potential candidate countries;
• Component III (Regional Development) which is available only to candidate countries;
• Component IV (Development of Human Resources) which is available only to candidate countries;
• Component V (Rural Development) which is available only to candidate countries.
IPA assistance is built on numerous strategic documents such as the priorities of the European Partnership and the Stabilisation and Association Agreement (SAA), which are reflected in the Multiannual Indicative Planning Document (MIPD) and the Multiannual Indicative Financial Framework (MIFF). The programmes are adopted by the Commission after consultations with beneficiary countries and other interested parties. They are implemented in one of three ways: centralized, decentralized, and joint management.
The Commission supervises programme implementation through its services in the Directorate-General for Neighbourhood and Enlargement and in European Union delegations in the countries concerned. A monitoring system has been established that includes Joint Monitoring Committees between the Commission and beneficiary countries, where the implementation of financial assistance programmes is discussed with the help of monitoring and evaluation reports, and corrective actions are agreed when necessary. Further monitoring is carried out at sector and project level.
IPA multi-beneficiary activities complement and add value to support based on the national IPA programme.
IPA II (2014 - 2020)
Under IPA II in the period 2014 -2020, support will be directed to beneficiary countries in five policy areas:
1. Reforms in the process of preparation for Union membership
2. Socio-economic development and regional development
3. Employment, social policies, education, promotion of gender equality and development
4. Agriculture and rural development
5. Regional and territorial cooperation
In order for funds allocated through IPA II to be made available to the beneficiary state, it is necessary for the state to conclude and ratify the Framework Agreement with the European Commission, which applies to the entire seven-year period and defines the principles of financial cooperation between the beneficiary state and the Commission.
IPA III (2021 - 2027)
The new financial instrument IPA III relates to the period 2021-2027.
IPA III is the third generation of the European Union’s pre-accession assistance instrument for the countries of the Western Balkans and Turkey.
IPA III will provide support to beneficiary states in the seven-year period 2021-2027 with a total budget of EUR 14.2 billion, which is a significantly higher amount compared with IPA II and IPA I.
Through this instrument, the European Union continues to provide financial support for legal, economic and social reforms in candidate countries and potential candidate countries, enabling them to meet the criteria for membership in the Union.
Assistance under the IPA III instrument is structured in five windows.
Five components (thematic windows) for indicative allocation of funds:
Thematic Window 1
Rule of law, fundamental rights and democracy;
Thematic Window 2
Good governance, alignment with the acquis, strategic communication and good-neighbourly relations;
Thematic Window 3
Green agenda and sustainable connectivity;
Thematic Window 4
Competitiveness and inclusive growth;
Thematic Window 5
Territorial and cross-border cooperation.
Within each window, several thematic priorities are defined that reflect different parts of the acquis and EU policies and are common for all IPA III beneficiary countries.
LEGAL FRAMEWORK FOR IPA III
Financial support provided by the EU through the Instrument for Pre-accession Assistance during the financial period 2021-2027 is governed by a series of legal documents:
- Regulation (EU) 2021/1529 establishing the Instrument for Pre-accession Assistance (IPA III), adopted on 15 September 2021;
- Regulation (EU) 2021/947 (“NDICI Regulation”), Chapter III, Title II, except Article 28(1) of the Regulation, applies to the IPA III Regulation;
- Commission Implementing Regulation (EU) 2021/2236 of 15 December 2021 laying down specific rules for implementing Regulation (EU) 2021/1529 of the European Parliament and of the Council establishing the Instrument for Pre-accession Assistance (IPA III);
- Commission Delegated Regulation (EU) 2021/2128 of 1 October 2021 supplementing Regulation (EU) 2021/1529 of the European Parliament and of the Council as regards the setting of certain specific objectives and thematic priorities for assistance under the Instrument for Pre-accession Assistance (IPA III) (text with EEA relevance);
- Framework Financial Partnership Agreement between the European Commission and Montenegro on specific arrangements for the implementation of the Union’s financial assistance to Montenegro under the Instrument for Pre-accession Assistance (IPA III) and the Law on the Ratification of the Framework Financial Partnership Agreement signed on 10 October 2022 (“Official Gazette of Montenegro – International Treaties” No 6/2022 published on 21.10.2022).
