TECHNICAL ASSISTANCE TO THE COMMONWEALTH
OF INDEPENDENT STATES (TACIS)
69. The EU's TACIS programme is a major element of
the EU's relationship with Russia. The programme has in the past
had several priority areas for assistance, such as re-training
former military officers, promoting nuclear safety, and encouraging
private sector development. TACIS has allocated _139.7 million
in 1998, and _1200.5 million since 1991,[183]
15 per cent of which has been contributed by the UK.[184]
As we discuss below, the Helsinki Council called for a review
of TACIS in the light of Chechnya.[185]
Nonetheless, the Council of Ministers agreed on 29 December 1999
to extend TACIS from January 2000 until the end of 2006, with
_3,138.59 million to be spent over this period. The programme
will now focus on fewer but larger projects, with a narrower range
of priorities: regional cooperation, help for small and medium
enterprises, environmental protection and nuclear safety.[186]
The General Affairs Council of 25 January invited the Commission
to focus TACIS on "core areas directly promoting democratic
values."[187]
This was described by the Foreign Secretary as the suspension
by the EU of its next programme of financial and technical aid.[188]
It is not yet clear what will be meant in practice for TACIS.
70. There have been serious criticisms of TACIS's
operation since its inception, including by the European Court
of Auditors. In a report produced in 1998, the Court identified
unrealistic planning, inertia in many projects, and "bad
operating rules" although also drew attention to the unstable
political and legal environment in Russia, which is as problematic
for aid projects as it is for businesses.[189]
We heard a number of criticisms of TACIS during our visit to Russia,
and Professor Hanson noted in evidence to us that the Know How
Fund had been more responsive than TACIS, and said that "a
lot of EU programmes....are a boondoggle for quite a lot of people
both on the EU side and on the Russian side."[190]
We did find in our report on the South Caucasus and Central Asia
that the EU had been working to re-focus TACIS and tighten procedures.[191]
It is important that this effort continues: not least because
of the expense which TACIS represents, which might, as we discuss
below[192]
be allocated to the more effective Know How Fund. We conclude
that there continue to be serious criticisms of the EU TACIS programme,
in contrast to the well-regarded Know How Fund, and that, if clear
improvements are not identified in the performance of TACIS, consideration
should be given to investigating how funds can be transferred
from TACIS to better run programmes. We commend this issue to
our colleagues on the International Development Committee.
NORTHERN DIMENSION
71. During its Presidency of the European Union in
the last six months of 1999, Finland was keen to promote the "Northern
Dimension" of EU policy, relating to the Baltic region. A
significant element of this has been to strengthen the EU's relationship
with Russia, as the largest and poorest littoral state of the
Baltic. Finland has a border of 1300 km with Russia, across which
there is a 70:1 income differential, a potential source of instability.
Our interlocutors in St Petersburg spoke positively about the
Northern Dimension, and St Peterburg's role in it as the largest
city in the Baltic region. Finland also has a number of bilateral
interests in Russiafor example, the safety of the four
nuclear reactors in St Petersburgwhich are also interests
of the EU. One of the unstated objectives of Finland's promotion
of the Northern Dimension has been to encourage the EU to devote
more attention to these interests (just as the Mediterranean littoral
states have promoted interest in their region through the Barcelona
process).
172 3 per cent
of the EU's exports go to Russia. Press conference by Mr Patten
on 16 December 1999, available on europa.eu.int/comm/external_relations/speeches/patten/memo_99_71.htm. Back
173 Q133. Back
174 Q108. Back
175 Ev. p. 165,
Appendix 7. Back
176 Q112. Back
177 Q135. Back
178 e.g.
President Yeltsin, speaking at the Helsinki Summit with President
Clinton in March 1997 said "Russia is aiming to be recognised
finally as a full European state and we are also prepared to join
the European Union." St Petersburg Times, April 21-27, 1997
"Why beg to join EU? Russia should look to the East"
by Richard Dion. Back
179 Ev. p. 162,
Appendix 5. Back
180 Q110. Back
181 Third Report,
Session 1998-99, European Union Enlargement, HC 8, para. 79, available
on Committee web page: www.publications.parliament.uk/pa/cm/cmfaff.htm. Back
182 Q110. Back
183 TACIS Annual
Report, 1998, Com (99) 380, available on Commission web site:
europa.eu.int/comm/external_relations/nis/tar98/index.htm. Back
184 Ev. p. 119. Back
185 See para
72. Back
186 ue.eu.int/newsroom/main.cfm?LANG=1. Back
187 HC Deb 28
January 2000, c376W. Back
188 Speech at
Chatham House, 28 January 2000. Back
189 Court of
Auditors Special Report 11/98, C 335/, Concerning the development
of the PHARE and TACIS private sector for the 1991-1996 period. Back
190 Q118. According
to the New Shorter OED "boondoggle" is "N. American
slang. A trivial, useless, or unnecessary undertaking. Also,
a dishonest undertaking, a fraud." Back
191 Sixth Report
of Foreign Affairs Committee, South Caucasus and Central Asia,
Sixth Report, 1998-9, HC 349-I, page xxvii, available on the Committee
web page: www.publications.parliament.uk/pa/cm/cmfaff.htm. Back
192 See para
104. Back