DG ECHO's mandate, as defined in the Humanitarian Aid Regulation, is implemented through Financing Decisions that are adopted by the European Commission. A Financing Decision constitutes a budgetary envelope.

The Financing Decisions are the “legal basis” for the funding of each individual Action: this means that no Agreement may be concluded without the prior adoption of a Financing Decision.
The Commission adopts Financing Decisions to fund humanitarian operations in third countries/regions in accordance with the budgetary planning forecast at the end of each year.

The Decisions are taken to address the identified humanitarian needs and to cope with new emergencies and unforeseeable needs that arise during the year.

The Financing Decisions are elaborated on the basis of the operational strategy issued annually by ECHO and that draws up strategic objectives for the delivery of humanitarian aid.

The types of Financing Decisions are various and are differentiated on the basis of the following criteria:
 

• The degree of urgency of the humanitarian response
• The nature of the humanitarian crisis
• The amount of the financing Decision
• The duration of the humanitarian Actions to be implemented under the Financing Decision.

Each Decision constitutes ECHO’s intervention plan as concerns: the regions involved, the needs to be addressed, the objectives to be reached, the period of eligibility of expenditures and the period of implementation of the actions financed and the allocated budgeted.

For the partners it is important to understand the financing decision process

• to be able to provide inputs into the financing decisions (e.g. inputs in the drafting of the Worldwide decision/HIPs)

• to understand the limitation of ECHO funding (e.g. which actions can be funded)

• to have a clearer idea about the applicable rules and procedures (e.g. single bid for emergency decisions, or specific eligibility dates)