**Executive Summary:**
Council Decision CFSP 2023/577 amends Decision CFSP 2021/509, increasing the European Peace Facility's financial ceiling and introducing more flexibility in the collection and use of financial contributions from Member States. The overall financial ceiling is increased by EUR 2,000 million (2018 prices) across 2024-2027, respecting the 2023 payments ceiling. The decision entered into force on March 13, 2023.
**Key Points / Main Content:**
* **Financial Ceiling Increase:**
* Increases the overall financial ceiling of the European Peace Facility by EUR 2,000 million (2018 prices) across the years 2024 to 2027.
* The total overall increase of the Facility’s financial ceiling until 2027 is not to exceed EUR 5,500 million in 2018 prices.
* Sets the financial ceiling for the Facility for the period 2021-2027 at EUR 7,979,000,000 in current prices.
* Authorizes annual appropriations within specified limits for each year from 2021 to 2027 (listed in current prices).
* **Flexibility in Financial Contributions:**
* Introduces flexibility in the collection and use of financial contributions from Member States.
* Allows the receipt and use of advance contributions from Member States, which do not affect the amount of contributions due by that Member State or by other Member States, or the ability of the Facility to achieve its goals, and cannot be earmarked for any specific purpose.
* Expands the use of early financing for assistance measures, subject to authorization by the Facility Committee.
* Specifies that contributions to early financing by a Member State will not be used to finance assistance measures from which that Member State abstains.
* A Member State may pay advance contributions in a given financial year, to be deducted from its future contributions.
* **Early Financing Mechanism:**
* Establishes a minimum deposit system for early financing of Union rapid response operations, urgent measures, and individual assistance measures.
* Member States can contribute to early financing by paying contributions in advance or paying contributions within 10 days following dispatch of the call.
* Used advance contributions to the minimum deposits shall be replenished by increasing the contribution of the relevant Member States in the next ordinary call for contributions.
* **EU Crisis Management Military Exercise 2023 (MILEX 23):**
* Sets a financial reference amount of EUR 5,000,000 for the common costs of MILEX 23.
* Specifies incremental costs eligible for MILEX 23.
* **Definition of Exercise:**
* Defines "exercise" as a Union military CSDP exercise or the military component of a civilian CSDP exercise, conducted in accordance with the Exercise Policy of the European Union under the CFSP.
**Impact Analysis:**
* **Member States:**
* *Impact:* Increased financial commitments to the European Peace Facility; greater flexibility in contributing through advance payments.
* *Action Required:* To assess and plan for increased contributions to the Facility; to coordinate with the responsible administrator when making advance contributions, and to determine the financial years in respect of which that amount is to be deducted from its future contributions.
* **Council of the European Union:**
* *Impact:* Responsible for deciding on any further increases to the Facility's financial ceiling beyond the current increase, acting unanimously.
* *Action Required:* To monitor the international security environment and assess the need for further increases to the Facility's financial ceiling until 2027.
* **Facility Committee:**
* *Impact:* Increased responsibilities related to authorizing the use of early financing for assistance measures; deciding and revising the amount of the minimum deposits.
* *Action Required:* To establish procedures for authorizing the use of early financing; to propose, decide, and revise the amount of the minimum deposits, following proposals by the administrator.
* **Administrators of the Facility:**
* *Impact:* Manage minimum deposits for early financing; responsible for proposing to the Committee to enter additional commitment appropriations related to payments financed with advance contributions.
* *Action Required:* To manage the minimum deposits; to propose to the Committee to enter additional commitment appropriations related to payments financed with advance contributions, to cover unforeseen implementation needs.
Key Entities Referenced
European Union: A political and economic alliance of European countries.
European Peace Facility: A fund used to finance the common costs of EU military operations and to provide military assistance to partner countries.
Council of the European Union: A body composed of government ministers from each EU member state.
High Representative of the Union for Foreign Affairs and Security Policy: The chief diplomat and representative of the European Union in foreign policy.
Strategic Compass for Security and Defence: A plan to strengthen the EU's security and defence policy.
EU Crisis Management Military Exercise 2023 MILEX 2023: A military exercise conducted by the European Union to test and improve its crisis management capabilities.
Council Decision CFSP 2021/509: Council Decision establishing a European Peace Facility, and repealing Decision CFSP 2015/528.
Brussels: The de facto capital city of the European Union, located in Belgium, where the decision was adopted.
14.3.2023 EN Official Journal of the European Union L 75/23
COUNCIL DECISION (CFSP) 2023/577
of 13 March 2023
amending Decision (CFSP) 2021/509 establishing a European Peace Facility
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on European Union, and in particular Articles 28(1), 41(2), 42(4) and 30(1) thereof,
Having regard to the proposal from the High Representative of the Union for Foreign Affairs and Security Policy, with the
support of the Commission,
Whereas:
(1) On 12 December 2022, the Council agreed that the overall financial ceiling of the European Peace Facility (the
‘Facility’) should be increased by EUR 2 000million (in 2018 prices) across the years between 2024 and 2027. The
implementation of this increase is to respect the ceiling for payments agreed for 2023. The Council also
acknowledged that the evolution of the international security environment could make further increases of the
Facility’s overall financial ceiling necessary until 2027. Any further increase is to be decided by the Council acting
unanimously and is to be laid down in an amendment of Council Decision (CFSP) 2021/509(1). The total overall
increase of the Facility’s financial ceiling until 2027 is not to exceed EUR 5 500million (in 2018 prices).
(2) In its conclusions of 15 December 2022, the European Council reiterated the global dimension of the Facility and
welcomed the agreement in the Council on 12 December 2022to ensure its financial sustainability.
(3) The Strategic Compass for Security and Defence, approved by the Council on 21 March 2022, calls for a
re-assessment by 2023 of the scope and definition of common costs to enhance solidarity and stimulate
participation in military missions and operations, as well as of exercise-related costs, also in view of proposals
regarding the EU Rapid Deployment Capacity. The financing of the eligible costs of the EU Crisis Management
Military Exercise 2023 (MILEX 2023), by an amount of up to EUR 5 000 000, is without prejudice to future
decisions regarding the financing of common costs.
(4) The experience gathered since the adoption of Decision (CFSP) 2021/509 makes it necessary to introduce more
flexibility in the collection and use of financial contributions from Member States and in their use by the Facility,
notably by allowing the receipt and use of advance contributions. Contributions which a Member State chooses to
pay in advance do not affect the amount of contributions due by that Member State or by other Member States, or
the ability of the Facility to achieve its goals. Such advance contributions cannot be earmarked for any specific
purpose.
(5) In addition, it is necessary to introduce more flexibility by expanding the use of early financing for assistance
measures subject to authorisation by the Facility Committee. Contributions to early financing by a Member State
will not be used to finance assistance measures from which that Member State abstains in accordance with
Article 5(3) of Decision (CFSP) 2021/509.
(6) Decision (CFSP) 2021/509 should therefore be amended accordingly,
(1) Council Decision (CFSP) 2021/509 of 22 March 2021 establishing a European Peace Facility, and repealing Decision (CFSP) 2015/528
(OJ L 102, 24.3.2021, p. 14).L 75/24 EN Official Journal of the European Union 14.3.2023
HAS ADOPTED THIS DECISION:
Article 1
Decision (CFSP) 2021/509 is amended as follows:
(1) in Article 2, paragraph 1 is replaced by the following:
‘1. The financial ceiling for the implementation of the Facility for the period 2021–2027 shall be
EUR 7 979 000 000in current prices.’;
(2) in Article 4, the following point is added:
‘(g) “exercise” means a Union military CSDP exercise or the military component of a civilian CSDP exercise, conducted
in accordance with the Exercise Policy of the European Union under the CFSP.’;
(3) in Article 17, the following paragraph is inserted:
‘3a. By derogation from paragraph 3 of this Article, each administrator may propose to the Committee to enter in
the titles of the budget under his or her responsibility for a given year additional commitment appropriations related
to payments financed with advance contributions, as referred to in Article 29(15), to cover unforeseen
implementation needs. The additional commitment appropriations entered in the budget shall be deducted from the
annual financial ceilings in future years.’;
(4) in Article 26, paragraph 8 is replaced by the following:
‘8. Contributions of Member States in any given year shall not exceed their respective share of the payment ceiling
referred to in Article 25(2). This limit shall not apply to additional contributions pursuant to paragraph 7 of this
Article resulting from abstentions from assistance measures, or to advance contributions as referred to in
Article 29(15).’;
(5) Article 28 is replaced by the following:
‘Article 28
Early financing
1. The Facility shall have a minimum deposit system to provide early financing for Union rapid response operations,
urgent measures as referred to in Article 58 and, subject to the prior authorisation by the Committee, for individual
assistance measures, where sufficient funds are not available and the ordinary procedure for collecting contributions
would not allow for those needs to be met in good time. The minimum deposits shall be managed by each
administrator respectively.
2. The amount of the minimum deposits shall be decided, and revised as necessary, by the Committee, following
proposals by the administrator.
3. For the purpose of early financing of the minimum deposits, the Member States shall either:
(a) pay contributions to the Facility in advance; or
(b) when the Council decides to launch a rapid response operation to which they contribute, approves an urgent
measure, or when the Committee authorises its use for individual assistance measures pursuant to paragraph 1,
and it is necessary to resort to the minimum deposit, pay their contributions within 10 days following dispatch of
the call at the level of the reference amount of the rapid response operation or of the authorised cost of the urgent
measure or individual assistance measure, unless the Council decides otherwise.’;
(6) in Article 29, paragraph 9 is replaced by the following:
‘9. Any part used of the advance contributions to the minimum deposits shall be replenished by increasing the
contribution of the relevant Member States in the next ordinary call for contributions, unless they have replenished
their contribution beforehand. If there is a need to resort to the minimum deposit and the Member States concerned
have not replenished their contribution meanwhile, they shall pay the amount needed, if any, within 10 days, pursuant
to Article 28(3), point (b).’;14.3.2023 EN Official Journal of the European Union L 75/25
(7) in Article 29, the following paragraph is added:
‘15. In addition to the payments made following a call for contributions issued in accordance with this Article, a
Member State, on a voluntary basis and in coordination with the responsible administrator, may pay advance
contributions in a given financial year. In such case, the Member State that provided the advance contribution shall
indicate in coordination with the responsible administrator the financial years in respect of which that amount is to be
deducted from its future contributions.’;
(8) in Article 73, the following paragraph is added:
‘9. The financial reference amount for the common costs of the EU Crisis Management Military Exercise 2023
(MILEX 23) shall be EUR 5 000 000. In addition to the common costs eligible for exercises pursuant to Article 45, the
following incremental costs incurred for providing support to the headquarters and forces participating in the exercise
shall exceptionally be eligible for that exercise:
(a) transport, as indicated in Annex IV for the EU Battlegroup, including for its strategic enablers, and within the
simulated theatre of operations, temporary barracks and temporary lodging;
(b) works for deployment/temporary infrastructure: expenditure absolutely needed for the headquarters and forces
participating in the exercise to achieve its objective;
(c) identification marking: specific identification marks, ‘European Union’ identity cards, badges, medals, flags in
Union colours or other Force or headquarter identification marking (excluding clothes, hats or uniforms);
(d) running costs: incremental costs for services absolutely needed for the direct support to the deployment at
air and/or maritime entry points and logistical and assembly areas.’;
(9) Annex I is replaced by the following:
‘ANNEX I
ANNUAL FINANCIAL CEILINGS
The annual appropriations shall be authorised within the limits of the following amounts, without prejudice to
Article 17(3) and (3a) and subject to Article 73(2):
Current prices, in million euros
2021 2022 2023 2024 2025 2026 2027
Current
399 591 980 1 800 1 375 1 400 1434’
prices
Article 2
This Decision shall enter into force on the date of its adoption.
Done at Brussels, 13 March 2023.
For the Council
The President
J. PEHRSON