Which objective(s) does the Commission pursue?

-  Given the budgetisation of the EDF, all OCTs are financed from the EU Budget, under a new dedicated budget line in Heading 6, ‘Neighbourhood and the World’ (separate from the Neighbourhood, Development and International Cooperation Instrument/NDICI-Global Europe). The OCTs benefit from an ad hoc envelope under the budget (EUR 500 million).

-  Merging the two decisions – OCT and Greenland Decision – results in simplification and coherence, especially as the former OCT Decision already covered Greenland and the Greenland Decision was an additional instrument.

-  The list of areas of cooperation for sustainable development is wide, in line with EU and OCTs’ priorities, and has been slightly adapted – mostly to take account of sectors previously only found in the Greenland Decision, such as Arctic issues, raw materials, and food safety and security.

-  The new OCT Decision further strengthens intra-regional cooperation through a dedicated envelope, to strengthen the cooperation of OCTs with their non-OCT neighbours.

-  There is no longer an OCT Investment Facility in the Decision; investment support will be funded through the InvestEU programme for which OCTs are eligible.

-  OCTs remain eligible for Union programmes as a matter of principle, unless the rules of a specific programme preclude their participation – as under the previous OAD.

-  OCTs are eligible for the thematic part and rapid response actions of the NDICI – Global Europe.

-  Unless otherwise specified, the new OCT Decision will follow implementation provisions of NDICI - Global Europe, via a referral clause ensuring coherence and simplification. Where necessary, the new Decision provides for the specific, simplified rules for OCTs, as in matters of programming.

-  As a novelty, the Commission could have recourse to delegated acts to change the annex to the new Decision relating to trade matters, as and when such changes become necessary.

In terms of policy, the general purpose of the EU-OCT association, which constitutes a partnership, is to support the OCTs’ sustainable development and to promote the values and standards of the EU worldwide. 

The proposal for the new merged Decision was put forward in the context of the 2021-2027 Multiannual Financial Framework. The Communication ‘A new, modern Multiannual Financial Framework for a European Union that delivers efficiently on its priorities post-2020’ set the main priorities and overall budgetary framework for EU external action programmes under the heading ‘Neighbourhood and the World’.

The streamlining of the new legal architecture aimed to reduce the administrative burden compared to the previous instruments. As from 2013, the relations with OCTs and their financial resources (including programming and implementing rules) were covered by four instruments: (i) the Overseas Association Decision, (ii) the 11th EDF regulation, (iii) the Greenland Decision and (iv) the Common Implementing Regulation.

Merging the two Decisions – OCT and Greenland Decisions – has therefore resulted in simplification and coherence, especially as the former OCT Decision already covered Greenland and the Greenland Decision was an additional instrument. Having a single OCT instrument strengthens the OCTs’ status as a specific group of partners defined in the Treaty and further sharpens the focus on their specificities.

The new OCT Decision could not be included in the NDICI - Global Europe or in any other legal act subject to the ordinary legislative procedure. This is because it required a specific adoption procedure emanating from the OCTs’ special status: a Council Decision by unanimity, following consultation of the European Parliament.  

The budgetary and scrutiny powers of the European Parliament have been extended by incorporating activities previously financed by the EDF into the EU budget.

To sum up, the adopted new OCT Decision has followed the principles set out in the Commission proposal and aims to deliver:

- simplification and coherence in the legal framework;

- unity of management – having all OCTs under the same source of financing (the EU budget) creates synergies in programming and implementation;

- consolidation of shared objectives;

- higher profile for the OCTs as a group.

Outcome of Legislative Procedure

The adopted Decision on the Overseas Association, including Greenland (DOAG) retained all major aspects of the Commission proposal. As a result, the previous two Decisions are merged, the new DOAG follows NDICI rules for implementation via a referral clause (with some exceptions due to the OCTs' specificities), and delegated acts will be used to update the trade-related Annex II to take into account technological advancements or changes in EU customs or trade legislation.

Changes to the initial text as a result of the regular negotiating process do not substantially modify the content of the Commission proposal. Their purpose is to clarify the scope of certain articles, to incorporate concerns imposed by the EU's horizontal international agenda (climate, biodiversity, etc.), to take into account the outcome of the 2021-2027 MFF negotiations, to align with the various external instruments (coherence), and to confirm the destination of reflows accruing from the now defunct OCT Investment Facility.

Estimated savings and benefits

The new DOAG, as adopted, has resulted in simplification of procedures for programming and implementation, which reduces the burden on both the Commission and the OCTs, and ultimately also on the Council/Member States (trade articles; delegated acts). Moreover, merging the two decisions has increased coherence and raised the profile of OCTs as a group.