On 14 June 2018, the Commission published its legislative proposal for a regulation establishing the Instrument for Pre-accession Assistance (IPA) III for the period 2021-2027, under the new MFF Heading 6 'Neighbourhood and the World'. IPA aims to prepare candidate and potential candidate countries for EU membership for the rights and obligations associated with it. The instrument was first set up for the 2007-2013 programming period; IPA II is the continuation under the MFF 2014–2020. Its beneficiaries include the Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, Serbia, the Republic of North Macedonia) and Turkey. The 2018 proposed financial envelope for IPA III for the period 2021-2027 amounted to €12.9 billion (in 2018 prices; €14.5 billion in current prices), which was maintained in the updated Commission proposal in May 2020. The final agreed budget amounts to €14.2 billion in current prices.

Key elements that guided the proposal for a regulation:

• The need to align IPA III with the priorities of the 2018 Western Balkan enlargement strategy, particularly to maximise the impact of the six flagship initiatives set forth in it, and create flexibility to adjust to developments in relations with Turkey;
• With an indicative date for potential accession of some candidates within the timeframe of the next MFF, funds need to be ensured to support a gradual and seamless transition from pre-accession status to that of a member state, and to allow the increase of absorption capacity needed to be ready;
• IPA II is still being implemented and continuity needs to be preserved.

IPA's general objective is to support EU aspirants to adopt and implement all reforms (political, institutional, legal, administrative, social and economic) required to comply with EU's values and to progressively align to EU rules, standards, policies and practices on their path towards EU membership.

In terms of political priorities, the Commission proposes to shape IPA III around rule of law, fundamental rights and migration (including strengthening security cooperation, the fight against radicalisation and organised crime); EU policies and acquis; socio-economic development; investments for growth; reconciliation, good neighbourly relations and regional and cross-border cooperation. IPA III also needs to be further aligned with recent developments in the enlargement policy. In the aftermath of the COVID-19 pandemic, IPA III will also provide support for recovery. 

The new instrument will increase steer from the EU, as programming is based on priorities rather than country envelopes. This would allow to reward performance and progress towards key priorities, and increased flexibility to respond to the evolving needs of the partners on their EU path.

Although IPA has distinct objectives from the other external actions instruments, the proposal underlines that it should pursue complementary objectives with a full range of EU programmes, including internal policy programmes (synergies with the security, migration and energy policies), as well as to support the Erasmus external dimension. Coherence with the Neighbourhood, Development and International Cooperation Instrument is also sought, in particular with the investment component. IPA beneficiaries would be included in the External Action Guarantee under the NDICI which will be able to guarantee investments up to €53.4 billion worldwide in order to crowd in private investments. Synergies with Cohesion Policy and the Common Agricultural Policy will be kept in preparing the beneficiary countries to absorb and manage future EU financing. Coherence is needed with the InvestEU Fund to ensure potential access of pre-accession countries to it.

Parliament co-decides on the Commission's legislative proposal, together with the Council under the ordinary legislative procedure. Within the EP, the file has been allocated to the Committee for Foreign Affairs (AFET), with Željana Zovko (EPP, Croatia) and Tonino Picula (S&D, Croatia) appointed as co-rapporteurs in July 2019. The Committees for International Trade (INTA), Budgets (BUDG), Regional Development (REGI), Environment, Public Health and Food Safety (ENVI), and Civil Liberties, Justice and Home Affairs (LIBE) prepared opinions, as follows:

• On 22 November 2018, the BUDG and ENVI committees adopted their opinions. The rapporteurs for the file were, respectively, Ivana Maletić (EPP, Croatia) and Adina‑Ioana Vălean (EPP, Romania).
• On 29 November 2018, more than 390 amendments were tabled to the draft report in the AFET Committee.
• On 5 December 2018, the INTA committee adopted its opinion with rapporteur David Borrelli (NI, Italy).
• On 25 January 2019, the LIBE committee adopted its opinion with rapporteur Bodil Valero (Greens-EFA, Sweden).
• On 31 January 2019, the REGI committee adopted its opinion with rapporteur Joachim Zeller (EPP, Germany).

In March 2019, AFET tabled its report and Parliament adopted its first reading position, which introduced various amendments to the Commission proposal. Among other elements, EP’s amendments concern the definition of the specific objectives of the instrument, higher financial resources (€14.66 billion, current prices), an increased involvement of civil society organisations, and strengthened conditionality provisions.

As regards Council, the proposal was first presented by the Commission to the Working Party on Enlargement and Countries Negotiating Accession to the EU (COELA) on 3 July 2018. On 19 March 2019, the Council agreed its position on the IPA draft regulation, which does not cover financial and horizontal issues.

The MFF Regulation was adopted in December 2020, but negotiations on IPA III continued until June 2021, when Parliament and Council reached a political agreement. The EP formally approved the text on 15 September 2021. The Regulation is now in force and applies retroactively from 1 January 2021.

References:

• EP Legislative Observatory, Procedure file of instrument for pre-accession assistance (IPA III) 2021–2027, 2018/0247(COD)
• European Parliament, Committee on Foreign Affairs report on the implementation of the EU external financing instruments, 2017/2280(INI)
• European Parliament, Resolution of 18 April 2018 on the implementation of the EU external financing instruments: mid-term review 2017 and the future post-2020 architecture, 2017/2280(INI)
• European Commission, Proposal for a Regulation of the European Parliament and of the Council establishing the Instrument for Pre-accession Assistance (IPA III), COM(2018) 465
• European Commission, Communication on the EU budget powering the recovery plan for Europe, COM(2020) 442 
• European Commission, DG NEAR, Overview of the Instrument for Pre-accession Assistance
• European Commission, Communication on a credible enlargement perspective for and enhanced EU engagement with the Western Balkans, COM(2018) 65
• European Commission, Impact assessment accompanying the Commission proposals, SWD(2018) 337
• European Economic and Social Committee, Opinion,Instrument for Pre-accession (IPA III), REX/507-EESC-2018
• Council, Instrument for pre-accession assistance (IPA III): Council agrees its position, Press release, 19 March 2019

Further readings:

• European Parliament, EPRS, 'Instrument for Pre-accession Assistance (IPA III)', Briefing, November 2018

Author: Velina Lilyanova, Members' Research Service, legislative-train@europarl.europa.eu