Questions & Answers: The European Peace Facility
What is the European Peace Facility?
The European Peace Facility (EPF) is a fund established in 2021 and originally worth €5 billion financed outside the EU Budget, for a period of seven years (the current Multiannual Financial Framework 2021- 2027). It provides a single mechanism to finance all Common Foreign and Security Policy (CFSP) actions in military and defence areas. Following gradual replenishments, the EPF fund is now worth over €17 billion, including the latest dedicated €5 billion envelope for support to Ukraine, the Ukraine Assistance Fund (UAF).
The EPF took over the military and defence-related aspects previously covered by the Athena mechanism and the African Peace Facility. Under its “Operations” pillar, the EPF finances the common costs of the military Common Security and Defence Policy (CSDP) missions and operations and can combine the effects of the deployment of a training mission with the provision of the related material support (“train and equip”). The EPF also finances the costs of EU military exercises and the military and defence-related aspects of Peace Support Operations led by the African Union, which were previously supported under the African Peace Facility.
In addition, under the “Assistance Measures pillar” of the EPF, the EU is able to support partner countries bilaterally in military and defence matters. The assistance can benefit partners worldwide who face major security challenges and whom EU Member States decide to support. All assistance provided under the EPF is subject to strict safeguards and control mechanisms and in full compliance with human rights and International Humanitarian Law.
What is the added-value of the EPF?
The EPF addresses the limitations of its predecessor’s instruments: it covers an increased range of funding of the common costs of EU military missions and operations and allows the EU to support partners worldwide, not only through international or regional organisations but notably through bilateral support, including through the delivery of lethal military equipment, under very specific circumstances.
The EPF enables capacity-building activities for military actors, and the provision of training, equipment and infrastructure for security purposes. Other types of support, for example for development-related purposes or for the civilian security sector, are not subject to EPF financing and continue to be funded on the EU budget. This allows the EU to improve the capacities of partners to address crises, prevent conflicts and cater for their own security and stability – to the benefit of their population.
The EPF proved to be an essential tool for the provision of EU military assistance to Ukraine during the ongoing Russian war of aggression. To date, the EU and its Member States have financed almost EUR 50 billion of military equipment for Ukraine, EUR 6.1 billion of which through the EPF. Due to this unforeseen increase of the use of EPF funds, the global EPF envelope was topped-up onthree occasions and a special Ukraine Assistance Fund (UAF) for EUR 5 billion was created.
With a total value of more than €17 billion for the seven-year period of the current MFF, the EPF both ensures that EU funding is available on a reliable and predictable basis, and allows for rapid crisis response and provision of urgent assistance as well as long-term capacity building support to the EU’s partners. The EPF thus aims at closing previous gaps in the EU’s toolbox, enabling the EU to do more and to act more swiftly. In this manner, the instrument maximises the impact, effectiveness and sustainability of overall EU external action in peace and security.
What countries can benefit from the EPF?
The EPF has a global geographic scope for both assistance measures and operations. EU Member States regularly discuss priority regions for action, in line with existing EU strategies, based on partners’ needs and the security challenges they are facing.
What does the Operations’ pillar finance?
Military missions and operations are financed through a mixed system: common costs (notably related to the establishment and running of the different Headquarters (HQ) of the mission/operation) are financed through the Operations’ pillar of the EPF, and Member States pay for the remaining costs incumbent to their own forces deployed.
Through common costs, EPF-eligible expenditure include HQ running expenses (e.g. lodging and infrastructure), as well as basic refurbishment of training facilities, medical services in theatre and medical evacuation, or satellite imagery. Common funding of additional costs is allowed in certain cases, such as for the deployment of the EU Rapid Deployment Capacity, or on a case-by-case basis if approved by the Council.
The financing of expenses related to military exercises is also taken into account, which is paramount to ensure they are running smoothly, in particular with the objective of operationalising the EU Rapid Deployment Capacity through regular LIVE exercises, in order to meet the level of ambition set in the Strategic Compass.
Funding and management
Where is the money coming from?
The EPF is financed through contributions by all EU Member States based on a Gross National Income distribution key. This is what we call an “off-budget” instrument.
The Council has unanimously decided to fund the EPF outside the EU Budget in line with article 41(2) of the Treaty on the European Union (TEU).
For off-budget instruments, EU Member States pay their contributions every year, based on the estimated annual budget for the EPF in the Operations and the Assistance Measures pillars, respectively.
How high is the EPF budget?
The EPF financial ceiling has gradually grown from €5 billion in 2021 to currently €17 billion. This means that this is the maximum amount Member States can decide to allocate to this new instrument over the period between 2021 and 2027.
Who manages the EPF?
As a CFSP instrument, its implementation is ensured by the High Representative, with the support of the European External Action Service. For the purposes of financial administration, the High Representative is assisted by the European Commission's Service for Foreign Policy Instruments (FPI) (include link) for assistance measures and by the General Secretariat of the Council for the Operations pillar (include link) (which includes common costs of military CSDP missions or operations and the assistance measures whose implementation is entrusted to them).
An EPF Committee, composed of EU Member State representatives oversees the financial implementation by the administrators, the operation commanders and the accounting officers in the two pillars. The Council takes strategic decisions on the EPF, such as the distribution of the assistance to be provided to the beneficiaries in the different regions and countries, based on proposals by the High Representative. Member States can also submit proposals for assistance measures under the EPF.
What type of equipment cannot be funded by the EPF?
The EPF can provide all kinds of support related to military and defence matters that are not funded by the EU Budget.
The Council decides what kind of assistance and equipment can be supplied according to the needs of our partners. It assesses the level of guarantees and safeguards for adequate use, respect for human rights and international humanitarian law as well as other criteria such as ownership, avoidance of diversion, local absorption capacity, sustainability of the EU investment, etc.
This is framed by Article 49(5) of the EPF Council decision (include reference), “No assistance measure shall be used for the supply of any items which would be inconsistent with Union law or with the international obligations of the Union or of all the Member States”.
For example, landmines would be banned as all EU Member States are parties to the Ottawa Convention.
Monitoring and mitigating measures
How do you ensure that military equipment does not end up in the wrong hands or is used to commit human rights violations?
The Council has put in place an integrated framework consisting of compliance and control tools/mechanisms, which the beneficiary who receives military equipment must adhere to. In case of violations of the terms of the agreement, the Council decides on whether an assistance measure should be suspended or terminated. The High Representative can also provisionally suspend an EPF assistance measure.
EPF assistance measures are based on a thorough context and conflict analysis and on an assessment of the risks associated with the provision of military equipment to a certain country. The greater the risk, the more robust the safeguards and risk mitigating measures the EU is employing. The Council may also decide that, in certain situations, the EPF is not the right instrument and that other types of support might be better suited to help partners to provide for their own security and protect their population.
The decision to provide assistance under the EPF are always taken on a case by case basis, in a comprehensive and responsible manner, and is linked to commitments by the beneficiary.
EPF assistance is not considered in isolation, but within a broader political and diplomatic approach, the EU Integrated Approach.
You can find more information on the methodology .
What happens if the assistance measure is terminated, but the equipment has already been provided?
This scenario refers to the case where there has been an infringement of the commitments signed by the beneficiary, leading to a Council decision to terminate the assistance measure before its planned end.
Unless the beneficiary accepts to voluntarily send back the equipment provided, the Council has to decide on the appropriate reaction, on a case-by-case basis and according to the specific context.
This risk of this scenario materialising is carefully assessed when preparing a Council Decision on potential EPF assistance. Safeguards and control measures continue to be applied during the implementation of the assistance, and after the transfer of ownership of the equipment to the beneficiary until the end of its life cycle, to be able to prevent any possible infringement.