Regulation (EU) 2017/1601 establishing the European Fund for Sustainable Development (EFSD), the EFSD Guarantee and the EFSD Guarantee Fund

What it is

to set up the European Fund for Sustainable Development (EFSD), the EFSD Guarantee and the EFSD Guarantee Fund to support investments in regions outside the EU as a means to address root causes of migration. PROPOSED ACT: Regulation of the European Parliament and the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: the proposal forms part of the External Investment Plan (EIP) announced in the 7 June 2016 Commission Communication on establishing a new Partnership Framework with third countries under the European Agenda for Migration . The Committee on Foreign Affairs and the Committee on Development Committee on Budgets adopted a joint report by Eduard KUKAN (EPP, SK), Doru-Claudian FRUNZULICĂ (S&D, RO) and Eider GARDIAZABAL RUBIAL (S&D, ES) on the proposal for a regulation of the European Parliament and of the Council on the European Fund for Sustainable Development (EFSD) and establishing the EFSD Guarantee and the EFSD Guarantee Fund. As a reminder, the EFSD is the first pillar of the External Investment Plan (EIP), under which the Commission also plans to enhance technical assistance in partner countries (pillar 2) and to work towards improving the investment climate and overall policy environment in those countries (pillar 3). The committee recommended that the European Parliament’s position adopted at first reading, following the ordinary legislative procedure, should amend the Commission proposal as follows: Purpose : the EFSD shall contribute to the achievement of the Sustainable Development Goals of the 2030 Agenda and be guided by the objectives of Union external action set out in Article 21 of the Treaty on European Union (TEU) and of Union development cooperation policy set out in Article 208 TFEU and the internationally agreed development effectiveness principles, thus contributing to the Union's development and neighbourhood policies, with a particular focus on the eradication of poverty, long-term sustainable and inclusive growth, decent job creation, socio-economic sectors and on the support to micro, small and medium sized enterprises. foster sustainable reintegration of migrants returning to their countries of origin; strengthen resilience of transit and host communities; contribute to the implementation of the Paris Agreement by targeting investments to sectors that advance climate change mitigation and adaptation: at least 35 % of the financing to investments with components that contribute to climate action, renewable energy and resource efficiency. The EFSD shall be composed of regional investment platforms . These platforms shall be created by transforming the existing blending facilities created by Commission decisions. The platforms for Africa and the Neighbourhood shall be established first. The Commission shall work in close cooperation with the EIB supported by the other eligible counterparts as regards the operational management of the EFSD Guarantee. Strategic board of the EFSD : the Board shall ensure that investments have an appropriate and diversified geographical and…

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