3.5. The European Peace Facility (Sebastian Puig Soler

3.5. THE EUROPEAN PEACE FACILITY

by Sebastian Puig Soler

An ambitious approach to security and defence is paramount to respond to unprecedented external challenges linked to instability and fragility in the EU’s neighbourhood and beyond. As stated in the EU Global Strategy, this approach implies doing more to prevent conflict, promote human security, address instability and work towards a safer world. Concretely, and in line with the Implementation Plan on Security and Defence, as well as the progress made on several EU Defence Initiatives (PESCO, CARD, CDP, EDF and the upcoming Strategic Compass), we should enhance our ability to respond to external conflicts and crises, build partner capacities and protect the EU and its citizens.

In June 2017, EEAS Secretary General Helga Schmidt established a Task Force (TF) to review all of the current financial instruments at the disposal of the External Action Service, in order to better align funding with political priorities, based on current experience, and focus on results. One of the most relevant elements of this revision was the need to improve financial support for our peace and security goals, which can be advanced either through the EU budget or through offbudget means.

On 13 June 2018, the development of the European Peace Facility (EPF) was publicly announced by former HR/VP Federica Mogherini with the support of the European Commission. The EPF is a new off-budget instrument aimed at enhancing the Union’s ability to prevent conflicts, build peace and strengthen international security, by enabling the financing of operational actions under the Common Foreign and Security Policy (CFSP) that have military or defence implications. Starting in 2021, it will replace and enlarge the current financial instruments in this area, namely the Athena Mechanism and the African Peace Facility.

WHAT WE HAVE HAD UNTIL NOW

The operational experience acquired in recent years in the area of security and defence has taught us that while the EU budget is a key component of our response on peace and security issues, it has not been able to fund all categories of actions that the EU needs to undertake. Even taking into account existing off-budget mechanisms, there have consistently been relevant gaps in the current EU financial support architecture that have somewhat limited the effectiveness of overall EU peace, security and defence efforts, especially in three key areas: • CSDP military missions and operations: the EU’s ability to financially support CSDP military missions and operations is still limited. They have thus far been funded outside of the EU budget by the participating Member

States, including their common costs through the so-called Athena Mechanism, established in 2004. Successive Athena reviews have not led to a marked evolution in this financial coverage. The EPF aims to improve the scope of common costs by financing key capabilities for missions and operations, based on lessons learned (e.g. strategic advisers, force protection, helicopters, ROLE 2, etc.).

EUROPEAN PEACE FACILITY

An EU off-budget fund to build peace and strengthen international security

June 2020

In a more challenging global environment, the European Union needs to step up its actions to enhance its ability to preserve peace, prevent conflicts, and strengthen international security. By proposing a new European Peace Facility (EPF) the European Union is taking on more responsibility as a global security provider. The EPF is a proposal by the High Representative to set up a new off-budget fund, a fund outside of the Union’s multi-annual budget, potentially worth €8 billion. It will enable the financing of operational actions under the Common Foreign and Security Policy (CFSP) that have military or defence implications. It proposes to draw together existing relevant off-budget mechanisms, namely the Athena mechanism andthe African Peace Facility, addressing their gaps and limitations.

WHY IS THE EUROPEAN PEACE FACILITY NEEDED?

The aim of the EPF is to:

Increase effectiveness of operations: the EPF aims at funding the common costs of EU military Common Security and Defence Policy (CSDP) missions and operations. It will ensure that EU funding is available on a permanent basis, thus facilitating rapid deployment and enhancing flexibility. So far, through the Athena mechanism, a relatively small fraction –ranging from 5% to 10% - of costs for military operations are covered through common financing. The EPF proposes greater solidarity on common costs.

Support partners: the EPF will give the Union the capability to contribute to the financingof military peace support operations led by international partners on a global scale. Up to now, the African Peace Facility only allowed for financing of African-led peace supportoperations.

Carry out broader actions: Currently the EU has a limited capacity to engage in military or defence actions, such as capacity building, provision of training, equipment or infrastructure. The EPF will assist in building the capacities of partner countries’ armed forces to preserve peace, prevent conflict and address security challenges. For example, EU Military Training Missions are sometimes faced with the reality that partners cannot benefit sufficiently from the lessons learned during training, due to lack of often very basic equipment or facilities. The EPF will allow the EU to provide comprehensive support through integrated packages, which can include training, equipment and other means of support. This will help enable partners to address crises and security challenges by themselves. The EPF will only cover expenditure with military or defence implications that are not be funded under the Union’s budget.. It will thus help maximise the impact, effectiveness and sustainability of the EU’s external actions in peace and security. Through the EPF, the EU will be able to do more and to act more swiftly by using military and defence means as required.

FINANCING

The EPF will be financed through contributions by EU Member States based on a Gross National Income distribution key. Its ceiling proposed in the latest proposal by the President of the European Council is €8 billion over a period coinciding with the next Multiannual Financial Framework (MFF).

The EPF should simplify and streamline previously different funding arrangements, notably the Athena mechanism and the African Peace Facility, while allowing for greater flexibility. Actions funded by the Facility will be decided by the Council and Member States’ control ensured through a management committee.

€8 billion

WILL THE EUROPEAN PEACE FACILITY REPLACE OTHER EU FINANCING INSTRUMENTS?

The EPF builds on the African Peace Facility and the Athena mechanism. It will continue financing actions currently supported through these instruments, but will allow the EU to overcome geographic andthematic limitations, building on the experience of the last years.

The EPF is not designed to finance expenditure that is eligible for funding under the Union’s budget.

Support to partners under the EPF will pursue EU foreign and security objectives, as reflected in the Treaty on the EU. It will be subject to strict controls, including conformity with democratic principles, human rights law and International Humanitarian Law.

In line with the EU’s Integrated Approach, consistency will be ensured between the actions financed under the EPF, and other actions undertaken within the CFSP or other instruments of the Union’s external action, including relevant Capacity Building for Security and Development (CBSD) mechanisms.

1 The Africa Peace Facility is today financed from the extra-budgetary European Development Fund. The Athena mechanism is an off-budget financing arrangement

• Support to partners’ military peace support operations: such support is currently limited to African-led operations. Financing has been provided outside of the EU budget through the African

Peace Facility (APF) as part of the European Development Fund (EDF). Due to the budgeting of the EDF from 2021, the APF instrument is about to disappear. The EPF will give the Union the capability to provide operational support directly to third countries and international and regional organisations around the world, not just in Africa and to the African Union. • Broader actions of a military / defence nature in support of CFSP objectives: at present, there is limited capacity to engage in such actions, in particular capacity-building activities for military actors and the provision of military training, equipment and infrastructure. A major weakness of current Capacity Building for Security and

Development (CBSD) provisions, as set out in the current Instrument contributing to Stability and Peace (IcSP) and – from 2021 – in the future

Neighbourhood, Development and International

Cooperation Instrument (NDICI), is that their scope is restricted to actions that primarily have a development cooperation objective, in very specific circumstances. In EU Military Training Missions (EUTMs), the limited provision of capacity-building elements has so far mostly been funded via voluntary contributions from

Member States. The EPF would explicitly allow for ‘train and equip’ activities in support of third country partners in pursuit of CFSP objectives.

WHAT WE WILL HAVE

At the time of writing this article, the political discussion on the Council Decision establishing the EPF and some accompanying elements is about to be concluded, pending several details regarding financial provisions, implementation safeguards, political guidance and the scope of common costs. But the main elements of the instrument are in place.

The EPF comprises two financing pillars in a single instrument, thereby simplifying decision-making procedures, bringing greater unity and coherence to EU actions in this context: • Operations Pillar: to finance the common costs of Union military missions and operations. • Assistance Measures Pillar: to finance the following Union actions under Article 28 TEU, where the Council decides unanimously that the operating expenditure arising therefrom shall be charged to the Member States: • actions to strengthen the military and defence capacities of third countries and regional and international organisations; • support to military aspects of peace support operations led by a regional or international organisation or by third countries.

As the EPF allows for CSDP military missions and operations to directly implement or support the implementation of assistance measures if the Council so decides, they would also be able to provide integrated packages within the scope of their mandates, combining security, training, equipment and direct military assistance, with the aim of delivering full, comprehensive engagement in theatre.

The provision of military equipment through the EPF will be in accordance with the highest international standards for the export of such equipment, in full respect of international law, including international human rights law (IHRL) and international humanitarian law (IHL), and with adequate assurances regarding its end use.

MANAGEMENT

The EPF will be managed under the authority and direction of a single Facility Committee composed of a representative of each Member State, chaired by a representative of the Member State holding the Presidency of the Council. There will be two Administrators, one for operations and another for assistance measures, who will act as the legal representatives of the Facility in matters pertaining to their respective responsibilities. Specific financial

rules will be developed for the implementation of the expenditure, building on the existing provisions within the Athena Mechanism and the APF.

FINANCIAL AMBITION

For the EPF, the amount of EUR 5 billion was agreed in the July 2020 European Council Conclusions. The European Council did not provide a breakdown of this amount per year. This amount will be broken down into annual ceilings for the period from 2021 to 2027, taking into account the estimations for military missions and operations and for continuing the current level of support provided under the APF, as well as an assumption of a growing trend until 2023-2024, when the Facility will reach a ‘cruising speed’, according to its global scope.

CONCLUSION: A PROMISING FUTURE

The EPF aims to close existing gaps in the EU’s toolbox, enabling the EU to do more and to act more swiftly by using military and defence means if required. In order to reach this objective, the EPF will offer improved flexibility, drawing on lessons learned from current instruments and mechanisms. It will also ensure that EU funding is available on a permanent basis and with a longterm perspective, while allowing for rapid response to crises and other urgent requests. Finally, the EPF foresees the provision of integrated packages that will include military training provided by EUTMs, military equipment and support.

This is a true game-changer in the military CSDP framework, which would allow the EU to become a far more effective and influential partner in international crisis management.