1.    COMMISSION PROPOSALS FOR RESTRUCTURING EU BUDGET

On Friday 6 September EuropeAid met with NGO representatives in Brussels to seek their views on proposals being developed in the Commission to re-structure chapter 4 of the annual European Community budget.  With the current reforms taking place in the external services of the Commission, and the adoption of priority sectors in the Development Policy statement of 2000, the Commission is arguing that the current structure no longer meets the needs of the Community’s development programme.  The devolution of decision making and implementation to Commission Delegations is central to the reforms, and the Commission is therefore seeking to streamline procedures and regulations governing the budget.  The amalgamation of the 30 odd thematic budget lines – most of which are relatively small – into four lines is the main objective of the Commission.  Three of these already exist being on human rights, food security and co-financing with NGOs.  The fourth, possibly under the heading “Sustainable Development”, would bring together the majority of thematic budget lines that currently exist.  The Commission argues that in merging budget lines in this way not only could a more effective management of the resources be put in place, but it would also enable the financial instruments to respond to policy priorities, rather than the other way round that the believe to be the case at present.  They also believe that the there can be increased coherence in decisions taken on using the Community’s aid not least because the devolution of responsibility to the delegations could be fully implemented.  They hope to get support from the European Parliament, Council and civil society so that the Commission can introduce these proposals into the Provisional Draft Budget for 2004, and needs to be finalised by the Commission by April next year.

NGO responses to the proposals is cautious.  This is partly because the implications of the proposed changes is not yet clear, and partly because these proposals come before the results of the Parliament’s initiatives to increase effective accountability of the aid budget have been achieved.  The Parliament has consistently expressed a view that a reform of the budget may be desirable, but this can only be accepted once the tools and mechanisms for effective dialogue and setting of priorities that involve Parliament have been established, and when the reporting system for assessing implementation are in place.  While these are being developed by the Commission they are not yet functioning, and the concern with accepting the Commission’s proposals for budget reform are that they will actually lead to less transparency and accountability in which the Parliament’s ability to exert its statutory role on the budget is weakened.

2.    COMMISSION COMMUNICATION ON THE PARTICIPATION ON NON-STATE ACTORS

The long promised Communication from the Commission to the European Parliament and Council is starting to take shape.  First promised more than a year ago for presentation to the Belgian Presidency, the draft Communication is now at the stage of inter-service consultation.  This means that it is likely to be adopted by the Commission during the Danish Presidency.  Since the Development council as such no longer exists it is expected to be presented to the General Affairs and External Relations Council.  Whether the process for completing and adopting the Communication will be in time for the November meeting of the Council remains to be seen. 

It should be recalled that the last meeting of European NGOs with Commissioner Nielson (4 June) focused on this issue and the NGO networks presented a reflection document entitled The Role of Civil Society in the EU’s Development Policy that can be found at http://www.eurostep.org/pubs/position/ge2160.pdf.

3.    DEVELOPMENT POLICY AND THE COUNCIL

Now that the Development Council no longer exists as a separate entity the question arises on how development issues will be handled by the General Affairs and External Relations Council.  Before the Seville European Council that abolished the Development Council it was scheduled to meet at the end of November.  It now seems that there are plans for a development focus as part of the GAERC meeting 18 & 19 November when a number of development issues will be grouped together for consideration.  This is an attempt to encourage the participation of Ministers and Secretaries of State from Member States who are specifically responsible for development policy.  One consequence of this change will be that the next meeting that European NGOs had scheduled with Commissioner Nielson will take place after the Council considers these issues on development.  The original planning had foreseen this dialogue taking place one week before the meeting of the Development Council.

4.    CONVENTION ON THE FUTURE OF EUROPE

After the summer break the second phase of work for the Convention on the Future of Europe begins.  The first period from March to July was projected as the listening phase, a period for brainstorming in order to get ideas on the table.  In this second stage the drafting of text begins, which will be considered by the Convention as a whole. It can be expected that these texts will start to emerge in October and November.

The next three months is also crucial for the external dimension as the Convention’s Working Group on External Actions starts its work next week, and is expected to report to the Convention as a whole in December.  Jean-Luc Dehaene, Vice-Chair of the Convention, was appointed Chair of this group in July.  The members of the Working Group will be confirmed when it begins its work next week.  The mandate for this group is defined by a list of 5 questions.  These are:

i.                     How should the interests of the Union be defined and formulated?

ii.                   How should the consistency of the Union’s activities be ensured, coordinating all instruments available to it (including development aid, humanitarian action, financial assistance, trade policy, etc)?

iii.                  What can be done to ensure that the decision-making process allows the Union to act rapidly and effectively on the international stage?  How far could the Community method be extended to other fields of action and how could this be made more effective?  What easing of the rule of unanimity might be considered?

iv.                 What lessons may be drawn from the experience gained from the creation of the post of High Representative for the CFSP? What scope for initiative may be assigned to him? How can it be ensured that he has the necessary resources, including financial resources, at his disposal?

v.                   What amendments to arrangements for external representation of the Union would increase the Union’s influence at international level?  How could better synergy be achieved between the diplomatic activity of the Union and of the Member States?

Meanwhile the Civil Society Contact Group working around the Convention (comprising representatives from development, human rights, environment, and social NGOs together with the ETUC) are working towards promoting the debate in Member States.  In June a short common statement was produced (http://www.eurostep.org/strategy/future/csg020621.htm) setting out the overall objectives that the Contact Group has for the Convention.  The Contact Group is promoting the establishment of national contact groups from the current Member States and the applicant countries.  These would involve NGOs from different sectors as well as the trade unions.

5.    INTERNS AT THE EUROSTEP SECRETARIAT

Eurostep welcomes four new interns who have started working at the secretariat in Brussels.  These are Filippo Ortolani who will focus on the developing Eurostep’s advocacy co-operation with civil society in Uganda.  He will spend three months in Uganda.  Giovanna di Roberti will be based in the secretariat monitoring the start of the trade negotiations between the ACP and EU.   Håkon Bundgaard Paulsen will focus on the Convention on the Future of Europe.  Anna Zachrisson will concentrate on developing Eurostep’s methodology for ensuring the integration of gender equality and rights into all parts of the programme.  They will all work with Eurostep until December.  Håkon will remain until January.