EuropeAid reorganisation

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Summary

1. Overall framework for the implementation of the
   Commissions external assistance
2. EuropeAid 2004 Performance
3. Towards a new strategic financial framework

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Overall frameworkfor the implementationof the
Commissions external assistance
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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 80s

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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

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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

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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)

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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 (EuropeAids 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

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EuropeAids mission
Implementation of all external aid instrumentsto
third countries

• Exceptions
• Pre-accession
• CFSP and Rapid Reaction Facility
• Humanitarian assistance Macro-financial
  assistance
• Fishery agreements

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,

Thus in 2004 New financing decisions 6,9
billion Payments 6,2 billion
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EuropeAid 2004 Performance
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Financial Performance (1)

• Amounts committed in 2004 6.9 billion (-10)
• Africa, Caribbean, Pacific 2 647 million
  
• Middle East/Mediterranean 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

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EuropeAids portfolio (end 2004)
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Financial Performance (2)
Amounts paid in 2004 6.2 billion (9 -
Increase of payments with 73 since 1997)
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Financial Performance (3)
Stabilisation of outstanding commitments around
20 billion euros since 2000
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Financial Performance (4)
Decrease in implementation years
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Devolution nearly completed (1)

• 77 Delegations out of 80already 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

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Devolution nearly completed (2)
Increase of staff in Delegations Increased
number of staff managing external aid (57)
favouring Delegations ( 148)

• Decrease in EuropeAid staffing from1400 (2001)
  to 960 (2005)

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Devolution nearly completed (3)
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Towards a new strategic financial framework
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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
• Continental strength (neighbourhood policy)
• Partner for sustainable development
• Global actor ensuring civil and stategic
  security
• Simplification and rationalisation of instruments
• Budgetisation of the EDF

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Towards a new strategic framework (2)
New proposed instruments
Developmentco-operation andeconomic
co-operation(new)
EuropeanNeighbourhoodand PartnershipInstrument
(new)
Instrumentfor pre-AccessionAssistance (new)
Horizontal
Instrument for Stability (new)
Macro-FinancialAssistance
Instrument forHumanitarian Aid
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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)

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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

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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

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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
  cross-border challenges affecting the security of
  the citizen
• Safeguarding against critical technological
  threats, nuclear safety, non-proliferation

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Main common provisions (1)

• Central role of programming
• dialogue with partner countries involving civil
  society (ownership, national development
  strategies)
• country and regional strategies / multi-annual
  indicative allocations based on needs and
  performance criteria
• 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

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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

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Indicative amounts 20072013(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

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