Summary 1 Overall framework for the implementation of

Summary 1. Overall framework for the implementation of the Commission’s external assistance 2. Europe. Aid 2004 Performance 3. Towards a new strategic financial framework

Overall framework for the implementation of the Commission’s external assistance

The origin of EC external aid • The Treaty of Rome in 1957 and the creation of the European Development Fund in 1958 • 2 Youndé Conventions 1963 -1974 with 18 to 20 EAMA countries. • 4 Lomé Conventions 1975 -2000 with 46 to 68 ACP countries. • The Cotonou Agreement signed in 2001 with 77 ACP countries. • Mediterranean Protocols and Asia-Latin America Regulations starting from years ’ 80 s

Political objectives (1) As defined in the Maastricht Treaty (1992) : • sustainable economic and social development • gradual integration of developing countries into world economy • fight against poverty • promotion of Human Rights and strengthening of democracy and the rule of law

Political objectives (2) • The Amsterdam Treaty (1997) consolidated the approach on sustainable development and the importance of human rights • The Constitutional Treaty (2004) confirms that development cooperation is an EU policy in its own right for which the Community has a shared competence with the Member States; poverty eradication remains the priority objective

EU Development Policy • Development Policy Statement (2000) • Main goal : poverty reduction • Coherence with the Millenium Development Goals (MDGs) • 6 priority sectors: trade & development / regional integration and co-operation / transport / governance & institutional capacity building / sustainable rural development and food security / macro-economic policies & access to social services • Development of Sector Policy support and of Budget support • Update of Development Policy Declaration in 2005 (Commissioner Michel)

The Commission, today, a major development actor • Third donor of Official Development Assistance (ODA) after the USA and Japan • First donor of humanitarian aid (€ 513, 3 million in 2004) • 2004: new commitments (grants) amounted to € 8, 5 billion (Europe. Aid’s portfolio + Humanitarian Aid + Pre. Accession instruments + CFSP + Rapid Reaction Facility) • Co-operation with more than 150 partner countries, territories and regional organisations • Network of 130 Delegations

Europe. Aid’s mission Implementation of all external aid instruments to third countries Geographical programmes. Community budget : CARDS : Balkans TACIS : New Independent States MEDA : Middle East and Mediterranean EPRD : South Africa ALA : Asia and Latin America. EDF 6, 7, 8 and 9 : ACP Thematic Programmes Food security, NGO co-financing, democracy and human rights, environment, forests, … Exceptions Pre-accession CFSP and Rapid Reaction Facility Humanitarian assistance Macro-financial assistance Fishery agreements Thus in 2004 New financing decisions : 6, 9 billion € Payments : 6, 2 billion €

Europe. Aid 2004 Performance

Financial Performance (1) Amounts committed in 2004: 6. 9 billion € ( -10%) • Africa, Caribbean, Pacific • Middle East/Mediterranean 2 647 million € 1003 million € • Balkans 663 million € • Asia 611 million € • New Independent States 504 million € • Latin America 312 million € • South Africa 133 million € • Thematic Programmes 1 040 million €

Europe. Aid’s portfolio (end 2004)

Financial Performance (2) Amounts paid in 2004: 6. 2 billion € (+9% - Increase of payments with 73% since 1997) Billion € 6, 2 billion €

Financial Performance (3) Stabilisation of outstanding commitments around 20 billion euros since 2000 Billion euros 21 billion euros (provisional)

Financial Performance (4) Decrease in implementation years

Devolution nearly completed (1) 77 Delegations out of 80 already devolved (beginning 2005) • 7 in Europe / Caucasus / Central Asia • 9 in the Mediterranean • 36 in Africa • 14 in Latin America and in The Caribbean • 11 in Asia and in The Pacific • Underway (3 Delegations): Burundi, Haiti, Israel

Devolution nearly completed (2) Increase of staff in Delegations: Increased number of staff managing external aid (+57%) favouring Delegations (+ 148%) Ø Decrease in Europe. Aid staffing from 1400 (2001) to 960 (2005)

Devolution nearly completed (3) Percentage of devolved geographical programmes Before the Reform (1999) Today (end 2004)

Towards a new strategic financial framework

Towards a new strategic framework (1) • New financial perspectives 2007 -2013: COM proposals in February, July and November 2004 / timing foreseen: political agreement at the European Council in June 2005 and adoption of the full legislation before end 2005 • 3 new main lines for the external action of the European Union: Ø Continental strength (neighbourhood policy) Ø Partner for sustainable development Ø Global actor ensuring civil and stategic security • Simplification and rationalisation of instruments • Budgetisation of the EDF

Towards a new strategic framework (2) New proposed instruments Development co-operation and economic co-operation (new) Instrument for Stability (new) European Neighbourhood and Partnership Instrument (new) Horizontal Instrument for Humanitarian Aid Instrument for pre-Accession Assistance (new) Macro-Financial Assistance

Instrument for Pre-Accession (IPA) • Integrated instrument to assist candidate (Croatia, Turkey) and potential candidate (Western Balkans) countries: replaces Phare, ISPA, SAPARD, Turkey pre-accession, and CARDS instruments • Clear distinction between potential Candidate Countries (support for participation in the Stabilisation and Association process) and Candidate Countries (adopt and implement the acquis and implement EU funds on accession)

European Neighbourhood and Partnership Instrument (ENPI) • Financial instrument designed to support the European Neighbourhood Policy and the strategic partnership with Russia: replaces MEDA, Tacis and other existing instruments • ENPI covers Community assistance to 17 Countries: Russia, Belarus, Ukraine, Moldova, Armenia, Georgia, Azerbaijan, Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Palestinian Authority, Syria, Jordan, Lebanon • Specific Cross Border co-operation component covering border regions in the Member States

Development Co-operation and Economic Co-operation Instrument (DCECI) • Financial instrument designed to support development co-operation in pursuance of Millennium Development Goals, for economic co-operation, and for horizontal, thematic, and global initiatives • DCECI covers all Countries, territories and regions not covered by IPA and ENPI: mainly Africa, Caribbean, Pacific (but not Overseas Countries and Territories), Asia, Central Asia, East-Jordan and Latin America

Instrument for Stability (IS) Financial instrument designed to support: • Response to political crisis, man-made or natural disaster, including Peace Support • Response to urgent global and regional crossborder challenges affecting the security of the citizen • Safeguarding against critical technological threats, nuclear safety, non-proliferation

Main common provisions (1) • Central role of programming: Ø dialogue with partner countries involving civil society (ownership, national development strategies) Ø country and regional strategies / multi-annual indicative allocations based on needs and performance criteria Ø Annual action programmes • Possibility to extend geographical coverage of instruments to global and trans-regional activities • External projection of internal EU policies foreseen under the instruments

Main common provisions (2) • Eligibility: no restrictions of the type of beneficiaries (including civil society) • Financing: no restriction on the type of measures (including budget support) and support measures (audit, evaluation, devolution costs…) • Procurement: consistent with untying proposal • Mechanisms for co-financing

Indicative amounts 2007– 2013 (current prices – without administrative expenditure) • Pre-Accession: 14 653 M€ (2. 093 M€ to be committed each year / a decrease of 17% compared to years 2004 -06) • Neighbourhood Policy: 14 929 M€ (2. 133 M€ to be committed each year / an increase of 67% compared to years 2004 -06) • Development: 44 229 M€ of which 23 572 for ACP countries: EDF budgetisation as of 2008 (6. 780 M€ to be committed each year / an increase of 34% compared to years 2004 -06) • Stability: 4 455 M€ (652 M€ to be committed each year / an increase of 44% compared to years 2004 -06) • Other instruments and reserves: 14. 895 M€