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Mr Joao de Deus Pinheiro, EU Commissioner for Development and ACP relations, presented the Union's negotiating position for negotiations with ACP on future ACP-EU relations, at a meeting with the Committee of ACP Ambassadors. Mr. Pinheiro highlighted certain aspects he considered to be of particular importance; some of which are summarised below:
1) Development, the reduction of poverty, maintenance of a political environment guaranteeing peace, security and respect for human rights are first and foremost the responsibility of each ACP country. The only goal of the EU's action is to support the ACP's efforts. 2) The future partnership will have to prepare and adapt its priorities and arrangements according to the levels of development and vulnerability of different countries. But this principle of differentiation will not diminish the value of the global partnership between the Union and the ACP States. 3) Eradicating poverty will be the central objective of the Agreement. 4) Economic and trade co-operation will be one of the pillars of the future Agreement. The aim is to allow ACP states to participate fully in a liberalised trade system and make the ACP-EU trade system compatible with WTO rules. On this point the Commissioner attempted to assure the ambassadors, that the Union was aware this could not be achieved overnight. The Union is of the view that a transition period of five years following the conclusion of the Agreement is adequate. Mr. Pinheiro added that Free Trade Areas, FTAs, with sub-areas defined by ACP states would be negotiated between 2000 and 2005 and implemented at 2015 at the earliest. He said the EU is determined to manage the liberalisation process with the flexibility required, i.e. according to an asymmetrical table with non-reciprocal market openings favouring the ACP. Lesser advanced ACP countries will benefit from a special treatment while more advanced ACP countries that are unable to participate in FTAs will benefit from the GSP, Generalised System of Preferences. However, the Commissioner pointed out that the Union's preferred option was the setting up of FTAs.
ACP ambassadors expressed their appreciation of the Commission's presentation and conceded that they (the ACP) were trailing behind in drawing up a negotiating position. The ambassadors announced that an ACP mandate should be approved by the Committee of Ambassadors by the end of this month. This should be formally adopted by the ACP Council of Ministers on 28 September. The formal opening of negotiations between the EU and the ACP takes places just two days later on 30 September.
2. AGREEMENT REACHED ON LONG TERM SOLUTION FOR LEGAL BASES FOR FROZEN BUDGET LINES
The European Parliament, the EU Council of Ministers and the European Commission have reached an agreement on both a short term and a long term solution to the crises surrounding certain frozen budget lines. The crisis arose after the Commission suspended several development and social action budget lines in response to the EU Court of Justice ruling of 12 May that clarified the legal requirements for the execution of the EU budget. In its ruling the Court stated that only 'non-significant' EU actions can be executed by the Commission without prior adoption of a legal base
The European Parliament and the EU Council (the two EU bodies responsible for its budget) approved the Commission's proposal for executing the 1998 budget, specifying which measures do not require legal bases. The Council approved without discussion two regulations proposed by the Commission three years ago, concerning co-financing with NGOs and decentralised co-operation in developing countries. The Council also specified that the 24 remaining fully blocked budget lines could be taken up without delay. These include support for NGOs in the area of human rights, monitoring of electoral processes, and support for the International Criminal Tribunal. Where a legal base has been proposed but not yet adopted, the EP and the Council have pledged to accelerate legislative procedure so as a decision is reached as quickly as possible. In addition, once ratified, the Treaty of Amsterdam will provide a legal basis for several actions, which in the meantime could be considered as preparatory measures. Where no legal basis has been adopted or proposed, the Commission has pledged to honour commitments contracted before 10 June 1998.
For the long term, a draft interinstitutional agreement was developed by the EP, the Council and the Commission. Four types of 'non-significant' action, not requiring a legal base were outlined as: pilot actions, preparatory actions, autonomous actions and credits for administrative operation. Pilot actions, which should be aimed at testing the feasibility and usefulness of an action, may not exceed 16 million Euros (1999 budget is already being proposed in Euros) per year and 32 million over two years. Preparatory Actions, intended to prepare proposals with the view of adopting them as future Community actions, may not be included in the budget for three years, including the time necessary for their preparation. The total amount granted to new preparatory actions should not exceed 30 million Euros a year and the total amount committed for all preparatory actions should not exceed 75 million Euros. In an annexed note to the draft agreement, the Commission specifies that it reserves the right to exceed the ceiling of 30 million Euros in exceptional circumstances. The Commission will prepare a report on current pilot and preparatory actions due out at the same time as the preliminary draft budget. Commission autonomous actions, which could be occasional or permanent, must be defined by the Council and EP before the conclusion of the budget procedure in December.
According to the President of the EP Committee for budgets, Detlev Samland - MEP, described the agreement as fundamental in ensuring that NGOs will receive funding before the EU institutions summer break. Several NGOs have however, giving the agreement a cautious approval. Representatives from the NGO community in Brussels have warned that they will not end their campaign against the EU until they were absolutely sure that similar freezes could not occur again.
3. GERMAN MEP CALLS ON ECHO CHIEF TO RESIGN FOLLOWING FRAUD CHARGES AGAINST ECHO OFFICIALS
MEP Edith Müller (German Green), the head of an ad hoc EP mission responsible for monitoring the implementation of EU aid in Bosnia has called Alberto Navarro, the head of ECHO (the European Community Humanitarian Office), to resign following the corruption charges against ECHO officials. Mrs Müller said Mr. Navarro hampered the inquiry in the affair concerning the disappearance of 2.4 million ECU earmarked for humanitarian aid in Bosnia and the African Great Lakes region.
The Commission unit for anti fraud action has learned that a Luxembourg company along with its subsidiary in Ireland apparently aided Commission officials in setting up false contracts for the money in question. Mrs Müller claims to have in her possession a letter from Mr. Navarro thanking the Luxembourg company for carrying out the contracts at a time when Mr. Navarro should have been aware of the fraud suspicions.
4. IN BRIEF
The European Commission has suspended humanitarian aid to Afghanistan just days after the Afghanistan Taliban militia's closure of ECHO's offices in Kabul, Afghanistan. The Taliban has accused the Commission of spreading Christianity through ECHO. The Commission had already decided to suspend aid to Afghanistan due to the Taliban's poor human rights record.
The EP Development Committee has asked to be involved in the Union's
discussions with the Togolese Government that could lead to the latter's
suspension from the Lomé Convention. This follows the Commission's
call for such discussions according to the Lomé Convention, when
one party to the Convention is said to have violated principles of democracy,
human rights and the rule of law.
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