Financial Perspectives 2007-2013 and EU as a global actor

1. Financial Perspectives 2007-2013 and EU as a global actor What does the proposal mean for the future?

2. 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)

3. 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

4. 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

5. 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 2004-2008) • 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

6. 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

7. 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

8. 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) Macro-Financial Assistance Humanitarian Aid Instrument

9. UGANDA HUM. AID DC & EC Rest of the world BRAZIL JAPAN IRAQ ENPI neighbouhood MOLDOV STABILITY EGYPT UKRAINE MACRO - FIN IPA Pre-accession ALBANIA CROATIA How will it work?

10. 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

11. 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.

12. 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 …

13. Distribution of funds

14. 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

15. 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?