Council Decision (CFSP) 2021/509 of 22 March 2021 establishing a European Peace Facility, and repealing Decision (CFSP) 2015/528

A European Peace Facility (the ‘Facility’) is hereby established for the financing by Member States of Union actions under the Common Foreign and Security Policy (CFSP) to preserve peace, prevent conflicts and strengthen international security in accordance with point (c) of Article 21(2) of the Treaty on European Union (TEU), in cases where, pursuant to Article 41(2) TEU, the operating expenditure arising from those actions is not charged to the Union budget.

The Facility shall be used for the financing of:

1. the common costs of Union operations under Articles 42(4) and 43(2) TEU having military or defence implications and which therefore, according to Article 41(2)TEU, cannot be charged to the Union budget;

2. assistance measures consisting of Union actions under Article 28 TEU where the Council decides unanimously, pursuant to Article 41(2) TEU, that the operating expenditure arising therefrom shall be charged to the Member States.

Assistance measures under point (b) are:

1. actions to strengthen the capacities of third States and regional and international organisations relating to military and defence matters;

2. support to military aspects of peace support operations led by a regional or international organisation or by third States.

This Decision also establishes a framework for the adoption and implementation of the assistance measures referred to in point (b) of paragraph 2, which shall be based on the principles and objectives set out in Article 56 and shall follow the strategic priorities and orientation referred to in Article 9.

The financial ceiling for the implementation of the Facility for the period 2021 to 2027 shall be EUR 17 040 000 000 in current prices.

The breakdown of the financial ceiling per annum shall be as set out in Annex I.

The financial ceiling shall be used in a manner that preserves the global geographical scope of the Facility and the Union’s ability to prevent and swiftly respond to crises and conflicts, primarily but not exclusively in areas that display the most urgent and critical security threats for the Union following, pursuant to Article 9(1), the strategic priorities set by the European Council and the Council. The Facility Committee referred to in Article 11 shall decide on the use of the financial ceiling by defining the overall amounts intended for assistance measures and the overall amounts intended for operations funded under the Facility, in order to ensure its financial sustainability. The Facility Committee shall revise those overall amounts as necessary in accordance with the strategic orientation provided by the Political and Security Committee (PSC) pursuant to Article 9(2).

The Facility shall have legal capacity, in particular to hold bank accounts, acquire, hold or dispose of assets, supplies and services, employ staff, enter into contracts, agreements and administrative arrangements, discharge its liabilities and be a party to legal proceedings, as required in order to implement this Decision. The Facility shall not have the purpose, or the effect, of making a profit.

In accordance with the second paragraph of Article 3 of Protocol No 7 on the Privileges and Immunities of the European Union the Member States shall, wherever possible, take the appropriate measures to exempt, remit or refund the amount of indirect taxes or sales taxes included in the price of movable or immovable property, where the Facility makes, for its official use, substantial purchases the price of which includes taxes of this kind. Such provisions shall not be applied, however, so as to have the effect of distorting competition within the Union. Furthermore in accordance with the first paragraph of Article 4 of that Protocol, imports of goods into the Union by the Facility are exempt from all customs duties.