Summary

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

2. EuropeAid 2004 Performance

3. Towards a new strategic financial framework

Overall frameworkfor the

implementationof the Commission’s external assistance

• 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

The origin of EC external aid

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 (1)

• 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

Political objectives (2)

• 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)

EU Development Policy

• 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 (EuropeAid’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

The Commission, today,a major development actor

Implementation of all external aid instrumentsto third countries

Thus in 2004

New financing decisions :6,9 billion €Payments : 6,2 billion €

ExceptionsPre-accessionCFSP and Rapid Reaction Facility Humanitarian assistance Macro-financial assistanceFishery agreements

EuropeAid’s mission

Geographical programmes.

Community budget :

CARDS :Balkans

TACIS : New Independent States

MEDA : Middle East and MediterraneanEPRD : South AfricaALA : Asia and Latin America

. EDF 6, 7, 8 and 9 : ACP

Thematic Programmes

Food security, NGO co-financing, democracy and human rights, environment, forests, …

EuropeAid 2004 Performance

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 €

EuropeAid’s portfolio (end 2004)

Others5%

DHR2% Food aid

5%

South Africa2%

Meda13%

Asia9%

Latin america6%

Tacis8%

The Balkans6%

EDF44%

Amounts paid in 2004: 6.2 billion € (+9% - Increase of payments with 73%

since 1997)

0

2.000

4.000

6.000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

EDF

Budget

6,2 billion €Billion €

Financial Performance (2)

Stabilisation of outstanding commitments around 20 billion euros since 2000

0

5.000

10.000

15.000

20.000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

EDF

Budget

21 billion euros (provisional)

Billion euros

Financial Performance (3)

Decrease in implementation years

0

1

2

3

4

5

6

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Budget

EDF

Total

years

Financial Performance (4)

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

Devolution nearly completed (1)

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004

Staff inDelegations

Staff atHeadquarters(EuropeAid,DEV, RELEX)

Increase of staff in Delegations:

Increased number of staff managing external aid (+57%) favouring Delegations (+ 148%)

Devolution nearly completed (2)

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

Percentage of devolved geographical programmes

Before the Reform (1999)

Today(end 2004)

45%

55%

Management atHeadquarters

J oint ManagementHeadquarters-Delegations

78%

22%

Management atHeadquarters

Management inDelegation

Devolution nearly completed (3)

Towards a new strategic financial framework

• 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

Towards a new strategic framework (1)

Developmentco-operation and

economic co-operation(new)

EuropeanNeighbourhoodand Partnership

Instrument(new)

Instrumentfor pre-Accession

Assistance (new)

HorizontalInstrument

for Stability (new)Instrument for

Humanitarian Aid

Macro-FinancialAssistance

Towards a new strategic framework (2)

New proposed instruments

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 cross-border challenges affecting the security of the citizen

• Safeguarding against critical technological threats, nuclear safety, non-proliferation

• 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

Main common provisions (1)

• 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

Main common provisions (2)

• 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€

Indicative amounts 2007–2013(current prices – without administrative expenditure)