Select Committee on European Scrutiny Twelfth Report


8 European Refugee Fund 2005-2010

(25369)

6256/04

COM(04) 102

+ ADD 1

Draft Council Decision establishing the European Refugee Fund for the period 2005-2010; and Commission staff working paper on the extended impact assessment on the draft Council Decision

Legal baseArticle 63(2)(b) EC; consultation; unanimity
Document originated12 February 2004
Deposited in Parliament16 February 2004
DepartmentHome Office
Basis of considerationEM of 25 February 2004
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

8.1 The first European Refugee Fund (ERF I) was established in 2000 and ends on 31 December 2004.[16] Its annual budget is currently about €40 million. The Fund provides financial support for Member States' work on receiving third country nationals who already have refugee or protected person status or who are applying for asylum or other forms of protection; on integrating them into the Member State; and on arranging their voluntary return to their countries or regions of origin. ERF I meets up to half the cost of these activities; the Member State bears the rest. Nearly all the Fund's money goes to Member States; the rest (5%) is used by the Commission for research and evaluation, public awareness campaigns and capacity-building in, for example, non-governmental organisations which help refugees.

8.2 Reception of applicants and people granted asylum includes the provision of accommodation, medical advice and legal assistance in the processing of asylum applications. Integration includes advice on housing, education and benefits; providing language training; helping people to become employable; and making partnerships with local authorities and voluntary organisations to assist integration. Work on voluntary returns includes advice about repatriation programmes, information about the situation in the countries of origin and help in resettlement.

8.3 Four countries (Germany, the UK, France and the Netherlands) have received more than half the financial support provided from the Fund so far. Each Member State receives a fixed annual payment (€100,000 in 2004) plus an amount based on the number of refugees and asylum applications it receives.

The document

8.4 The Commission proposes that a new European Refugee Fund (ERF II) should run for six years, from January 2005 to the end of 2010. The document comprises the text of a draft Decision to give effect to the proposal, together with the Commission's explanatory note and a financial statement. In addition, there is a working paper by the Commission's staff containing an assessment of the expected impact of the proposal and alternatives to it.

8.5 The groups of people to be helped by ERF II would be the same as those who benefit from ERF I (people with refugee or other protected status and applicants for asylum). Similarly, the action by Member States which would be eligible for financial support would remain reception, integration and voluntary repatriation. Every Member State would receive an annual fixed payment from the Fund (€500,000 for the accession states until the end of 2007 and then €300,000 a year, while the present Member States would get €300,000 a year for all six years) and payments reflecting the number of refugees and asylum-seekers they deal with.

8.6 But ERF II would have some important differences from ERF I. The main differences would be:

  • "A more strategic role for the Commission" — the Commission's slice of the budget would be doubled to 10% to enable the Commission to do more on best practice, and more on transnational projects and the analysis and dissemination of information. The Commission would also have a new power: the approval of Member States' multi-annual plans.
  • Multi-annual plans — ERF II would have two phases, 2005-07 and 2008-10. Every Member State would be required to produce a "multi-annual plan" for each of these phases and submit it to the Commission for approval.
  • More expenditure — between 2005 and the end of 2007, ERF II's annual expenditure would be marginally more than the current Fund's, but it would treble to €150 million a year between 2008-10. The draft Decision expressly requires the Commission to ensure that the annual appropriations for 2008-10 "are consistent with the financial perspectives" (Article2(2)).
  • New Reports — Member States would be required to send the Commission by 31 December 2006 an evaluation report on the projects co-financed by ERF II and to make further evaluation reports by the end of June in 2009 and 2012. The Commission would be required to make three reports: one by April 2007 on the results so far of ERF II, together with any proposals for amendment to the programme; the second by the end of 2009, providing an evaluation of results by then and a proposal for the Fund's future development; and a final evaluation report by the end of 2012.

8.7 Under the heading "subsidiarity", the Commission's explanatory note says:

"The requirement of promoting a balance in the efforts made by the Member States requires a financial contribution aimed at both relieving the pressure on the Member States most affected and developing the capacity of the Member States whose asylum infrastructure and services are inadequate, and presupposes a redistribution at European Union level which cannot be achieved by the Member States in isolation."[17]

8.8 If the proposal were not adopted by 1 May 2004, the draft Decision would become subject to co-decision between the Council and the European Parliament and to QMV in the Council.

The Government's view

8.9 The Parliamentary Under-Secretary of State at the Home Office (Caroline Flint) tells us that the Government has not yet decided whether to opt into the proposal. But the UK has taken part in ERF I and has received over 20% of the total ERF I funding since January 2000.

8.10 The Minister notes that the Commission proposes that ERF II should be implemented through two three-year multi-annual plans. She comments that:

"the Government is concerned that this will add to the burden on Member State responsible authorities, and will be seeking amendments to allow Member States to reserve a greater proportion of the budget for management and administration of the fund."

8.11 The Minister also notes that ERF II would span the current Financial Perspective and the Financial Perspective beginning in 2007. She says:

"This prejudices negotiations on the next Financial Perspective, which are just starting. Although some attempt is made to address this issue, a stronger clause is required that would only indicate funding until the end of 2006 with expenditure thereafter being re-examined in the light of the outcome of the Financial Perspective negotiations."

Conclusion

8.12 The costs associated with dealing with applicants for asylum are not evenly distributed among Member States. The case for sharing the costs of reception, integration and voluntary repatriation was recognised by the establishment of the European Refugee Fund in 2000. We can understand, therefore, why the Commission has presented this proposal for the continuation of the programme after the present one expires at the end of this year.

8.13 However, the draft Decision would not only continue the present programme. It also includes a new requirement for Member States to produce multi-annual plans and would give the Commission a larger share of the Fund and a greater role in the process through its consideration and approval of the plans. Increased expenditure is proposed in the second three-year phase. We note that the Government will be pursuing aspects of these proposals during the negotiations and that it has not yet decided whether to opt into the Decision. Moreover, consideration of the proposal is at an early stage. For these reasons, we shall keep the document under scrutiny. We should be grateful if the Minister would keep us informed of the progress of negotiations and tell us what decision the Government reaches on whether to opt into the Decision.


16   Decision 2000/596/EC; OJ No. L 252, 6.10.2000, p.12. Back

17   Pages 7 and 8 of the explanatory note. Back


 
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