Financial Perspectives and EU as a global actor What does the proposal mean for the future?

EU AS A GLOBAL ACTOR New EU Constitution: what’s in it for external relations? all Union’s external actions in the same title (Title V) distinction between Dev. Coop. and economic, financial & technical Coop. Focus of Dev. Coop. on poverty eradication, maintenance of the coherence principle Specific nature of humanitarian aid Foreign Affairs Minister and EU External Action Service EDSP: new European Defence Agency Role of European Parliament is strengthened (trade)

Trends at the inter-governmental level: CFSP and EDSP December 2003: EU Security Strategy approved at the European Council March 2004: Declaration on combating terrorism The steering board of the future European Defence Agency is set up November 2004: Commitment to increase both civilian and military capabilities for crisis management and adoption of a security action plan for Africa

How are these tendencies reflected in EU development policy? Through the proposal for the future Financial Perspectives Through the review of the Development Policy statement Through the review of international and bilateral agreements Through the use and creation of cooperation instruments

Concrete examples: Creation of the Peace Facility (€250 million from EDF) Rapid Reaction Mechanism Increase of the CFSP budget Regulation for a coop. instrument in the areas of migration and asylum (€250 million for ) Negotiation of agreements on readmission of illegal migrants with several third countries Systematic integration of a clause on cooperation in the fight against terrorism and WMD in agreements Pressure from certain EU Member States to review the DAC criteria in order to integrate security concerns

Future Financial perspectives ‘Interinstitutional Agreement’ between the Commission, the Council and the Parliament Decision of Member States on the ceiling of EU budget dominates the debate (1% of GNP or more?) and will influence the outcome External relations is a small category in EU budget (max 10% of total EU budget) and a low priority for many EU decision makers

EC proposal for the future FP Three priorities to be translated in instruments and legal basis: policy and strategy towards the new EU neighbours the role of the EU as an actor in sustainable development the role of the EU in face of the new security challenges

The new Instruments Development & Economic Co-operation (new) DC&EC (all countries not covered by ENPI and PAI ) European Neighbourhood & Partnership Instrument (new) ENPI (part of TACIS, MEDA and cross-border cooperation) Pre-Accession Instrument (new) PAI (candidate and potential candidate countries) Horizontal Instrument for Stability (new) Humanitarian Aid Instrument Macro-Financial Assistance

How will it work? DC & EC Rest of the world ENPI neighbouhoo d MOLDOV HUM. AID STABIL ITY MACR O - FIN UGANDA BRAZIL EGYPT UKRAINE JAPAN ALBANIA CROATIA IRAQ IPA Pre-accession

Inside the DC and EC instrument 5 regional and 1 national programmes: ACP, Asia, Latin America, Central Asia (Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan), Middle East (only covering Iraq, Gulf Countries, Yemen, Iran) + South Africa (specific agreement) A limited number of thematic programmes

Programming is the corner stone Multi-annual strategies for each programme National Indicative programmes for each country Coherence between geographic and thematic programming Annual programmes of action Programming is the task of the Commission, no consultation of the Parliament on multi-annual strategies, consultation of MS committees. The text is vague and weak about the consultation of beneficiary countries and of civil societies and NGOs.

NGO concerns on the EC proposal Instruments precede policy Confusing system: mixture of objectives and geographic scope in the instruments Overlap between instruments Risk of diversion from development objectives What about cross-cutting issues (EIDHR, gender) Role of civil societies Role of Parliament Financial aspects: no visibility of EU ODA, financial effort is not on poverty reduction Budgetisation of EDF: in favour but …

Distribution of funds

Where are we in the process? At Council level Luxembourg presidency pushing for an agreement on own resources and FP framework in June Difficult debate in the hands of Finance ministers defending national interests Decision by unanimity means alliances and compromises. Final decision unpredictable Points of friction: UK rebate and correction mechanism – net contribution – structural funds - agriculture No decision on the future EDF envelope in the absence of an agreement on FP in June – EDF budgetisation still in question

Where are we in the process? At European Parliament level Ad hoc Committee aiming at a report on the FP in May to influence EU Summit Opinions from committees under preparation Reports on instruments under co-decision expected before summer break (DC&EC, ENPI) Proposal to reject DC&EC regulation by Development Committee No unique instrument for developing countries → how to use the ENPI to support development policy and the fight against poverty?