6 Cooperation with the Occupied Territories
of the West Bank and Gaza Strip
| (24883)
12441/03
COM(03) 523
| Draft Regulation amending Council Regulation (EC) No. 1734/94 on financial and technical cooperation with the Occupied Territories.
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| Legal base | Article 179 EC; co-decision; QMV
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| Document originated | 29 August 2003
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| Deposited in Parliament | 19 September 2003
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| Department | International Development
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| Basis of consideration | EM of 29 September 2003
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| Previous Committee Report | None
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information requested
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Background
6.1 Regulation (EC) No.1734/94 on financial and technical cooperation
with the Occupied Territories was adopted on 11 July 1994 when
the EU decided to establish a specific budget line following the
Oslo accords and the first donor conference in October 1993.
6.2 The Commission noted in its explanatory memorandum,
dated 29 August, that a new political landscape was emerging with
the appointment of Abu Mazen as Prime Minister and the approval
by all parties of the Roadmap for Peace. To take account of these
developments, in the expectation that they would lead to increased
requirements for development aid in the Occupied Territories of
the West Bank and the Gaza Strip, the Commission said that an
amending Regulation was needed. The draft recitals state that,
taking into account the experience acquired by the Community as
a major provider of aid to the Palestinian people, new measures
for economic and social cooperation should be implemented.
6.3 Article 1 of the existing Regulation provides
for cooperation on the basis of five-year programmes, but the
situation on the ground has not allowed for multi-annual programming
or a comprehensive evaluation of the implementation of the aid
effort. The Commission said that identification of priorities
had to be done on an ad hoc basis and implemented annually.
The draft Regulation
6.4 The short proposal would renew the existing programme
and include some amendments of a purely technical nature, including
ones which would bring the existing Regulation into line with
the MEDA Regulation. These are necessary following the adoption
of the Decision which lays down procedures for the exercise of
implementing powers conferred on the Commission.[8]
If circumstances allow, implementation will be based on multi-annual
programmes.
6.5 The main objective is to aid the West Bank and
Gaza Strip to achieve sustainable economic, political and social
development, with a view to the creation of an independent, democratic
and viable Palestinian state. The Secretary of State for International
Development (Mr Hilary Benn) comments that:
"for this to be achieved:
- the economic and humanitarian
situation of the Palestinian population needs to be improved;
- social stability needs to be preserved by contributing
to the provision of basic public services;
- institution-building of a future Palestinian
state needs to be supported as well as the reform process of the
Palestinian Authority;
- implementation of the EC-PLO (Palestinian Authority)
Interim Association Agreement needs be facilitated; and
- there needs to be progress made on the implementation
of the Roadmap."
6.6 The Minister says that the main actions will
support social and economic development and good governance and
will include:
- improvement of social services;
- creation of an economic environment favourable
to economic growth, whilst seeking to improve the well-being of
the population; and
- the establishment of the infrastructure necessary
for trade.
The Government's view
6.7 The Government is content with the proposed
amending Regulation. The Minister says that the changes fit in
well with the UK's objectives to seek to help to reduce poverty
among Palestinians during the process towards statehood, and to
contribute to a successful peace process.
6.8 There is no implication that additional finances
will be required. The budget commitment under the present proposal,
"Community Operations connected with the Israel-PLO Peace
Agreement", is €47.74 million for the period 2004-2006.
The UK contribution is €9 million of this sum.
6.9 The proposal will be given a First Reading in
the European Parliament in November.
Press report
6.10 European Voice of 16-22 October 2003
reports the UN Commissioner-General of the UN Relief and Works
Agency for Palestine Refugees in the Near East (UNRWA), Peter
Hansen, as naming the UK among others as the EU countries which
are most generous to his agency. He said he wished to see larger
contributions from the remaining eight.
6.11 The article says that, according to UN estimates,
Israeli troops have caused more than €1 billion in direct
physical damage to the Palestinian economy since the intifada
began in 2000. Hansen is quoted as saying that part of the
damage was caused "unnecessarily" and that such damage
to property should be reimbursed by the Israeli Government. The
paper recalls that last year the External Relations Commissioner
Chris Patten effectively ruled out taking legal action against
Israel over damage inflicted on EU-funded projects. He pointed
out that suing Israel would be "horrendously complicated"
as the Palestinian Authority takes legal ownership of aid once
it is delivered.
Conclusion
6.12 The Commission's upbeat message of late
August is, sadly, out of date. However, this should not affect
the draft as it stands. The objectives remain as before. Nevertheless,
we take this opportunity to ask the Secretary of State whether
the EU's aid to the Occupied Territories is being negated to a
significant extent by the damage inflicted on the projects it
funds. Does the Government consider that some of this damage
has been "unnecessary"? Has the EU made representations
to the Israeli Government on the issue? If so, what was its response?
Does the Secretary of State consider that there should be a change
of policy on the projects funded, perhaps by shifting to those
which are less at physical risk, until a more peaceful situation
prevails?
6.13 Meanwhile, we shall not clear this document.
8 Council Decision No. 468/1999/EC - the 'Comitology'
Decision. Back
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