8 The 9th European Development
Fund
| (27469)
8671/06
COM(06) 185
| Draft Council Decision on the position to be adopted by the Community within the ACP-EC Council of Ministers regarding a decision to reassign part of the reserve of the 9th European Development Fund (EDF) envelope for long-term development
|
| Legal base | Articles 300 (2) and 310 EC; unanimity
|
| Document originated | 28 April 2006
|
| Deposited in Parliament | 8 May 2006
|
| Department | International Development
|
| Basis of consideration | EM of 16 May 2006
|
| Previous Committee Report | None; but see HC 34-xv (2005-06), para 12 (18 January 2006)
|
| To be discussed in Council | Prior to 31 May 2006
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared
|
Background
8.1 During the second half of 2005 we considered a number of documents
relating to the EU's development activity, most of which revolved,
in one way or another, around the EU's developmental relationship,
both collective and bilateral, towards Africa. Principal among
them was Commission Communication 13293/05, which was the Commission's
response to the instruction from the June 2005 European Council
to draw up a long-term global strategy on Africa by the December
2005 European Council.
8.2 The MDGs[27]
are at the heart. The Communication suggests that the EU should
focus its support in areas considered essential for attaining
the MDGs (peace and security and good governance), areas that
create the economic environment necessary for achieving the MDGs
(economic growth, trade and interconnection) and areas directly
targeting the MDGs (social cohesion, decent work, gender equality
and environment). These areas should be supplemented by support
for economic integration and political co-operation with the EU.
The Africa Union's (AU) "Peace Facility for Africa"
should be replenished and strengthened to allow it to better support
Africa's own efforts in this field. The Communication includes
a range of possible approaches in different areas, such as: good
governance, respect for human rights and the fight against corruption;
economic growth including trade and private sector development;
support to increasing competitiveness of African agriculture;
establishing an EU-Africa Partnership for Infrastructure; enhanced
support for basic service provision in social sectors and further
support for tackling poverty diseases; Migration; core labour
standards; environment; and climate change.
8.3 Our consideration of this and other related documents
culminated in our concluding Report on the EU Strategy for Africa
finally adopted by the December 2005 European Council, which the
Parliamentary Under-Secretary of State at the Department for International
Development (Mr Gareth Thomas) refers to in his 15 May 2006 Explanatory
Memorandum on this proposed Council Decision.
The proposed Council Decision
8.4 The Minister explains that this Proposal is for
a Council Decision confirming the position to be taken by the
Community at the Africa Caribbean and Pacific (ACP)-European Community
(EC) Council of Ministers on 1-2 June regarding the transfer of
€110 million (£76 million) from the reserve of the 9th
European Development Fund (EDF) long-term development envelope
to the regional co-operation envelope; which transfer of funds
requires the approval of the ACP-EC Council of Ministers.
8.5 He says that the funds would be used to support
various intra-ACP initiatives. He explains that "the existing
regional co-operation envelope is fully committed and so additional
resources are required The proposed initiatives for support are:
"€70 million (£49 million) for
the EU-Africa Partnership for Infrastructure, of which €60
million (£42 million) would be provided to a Trust Fund managed
by the European Investment Bank (EIB) and €10 million (£7
million) would finance preparatory actions and studies.
"€20 million (£14 million) to promote
the active participation of ACP states in world trade, with
€10 million (£7 million) in increased Community support
for the multi-lateral 'Integrated Framework' initiative and up
to €10 million (£7 million) for a continuation of a
Community programme to help ACP states participate more actively
in the World Trade Organisation.
"€9 million (£6 million) for a
sugar research project to underpin measures to support reform
in ACP countries affected by the reform of the EU sugar regime.
"€5 million (£3 million) for the
creation of a specific allocation for scholarships for ACP students
under the EC's Erasmus Mundus programme.
"€2 million (£1 million) contribution
to the Trust Fund for the African Union's African Peer Review
Mechanism.
"€4 million (£3 million) for a
programme with UN-HABITAT to support the upgrading of slums
in several ACP countries."
The Government's view
8.6 The Minister says that the UK can support the
transfer and the allocation of funds to the various activities
identified in the draft Council Decision, and explains that if
the transfer is agreed, the EDF Management Committee will subsequently
be required to approve individual funding proposals for each programme.
He recalls that the establishment of an EU-Africa Partnership
for Infrastructure was envisaged in the December 2005 European
Council's Conclusions on the EU Strategy for Africa, and continues
as follows:
"In February, the EC and EIB signed a memorandum
of understanding to create a Trust Fund, to be managed by the
EIB, to support infrastructure in Africa. The EC announced its
intention to contribute €60 million (£42 million) in
grants to the Fund with the EIB contributing €260 million
(£180 million) in loans. The Government supports this initiative,
which complements the Infrastructure Consortium for Africa, and
welcomes the EC's proposed contribution to this effect."
8.7 He goes on to explain that the 'Integrated Framework'
for the Least Developed Countries is:
"… an important multilateral initiative
in trade-related capacity building. It is designed to help countries
integrate trade into their national development strategies. The
Government welcomes the proposed EC support to this initiative.
We also support the intention to provide further funds for an
existing Community programme to help ACP states participate
in the World Trade Organisation. The programme was evaluated
in 2004 and was considered to be providing valuable support, aimed
at increasing the visibility and effectiveness of the ACP group
in the Doha trade round negotiations. The evaluators recommended
an extension of the programme, which will complement related Community
support for the ACP group with the ongoing negotiation of Economic
Partnership Agreements."
8.8 He then goes on to say that:
"The €9m (£6 million) programme to
support sugar research programmes for ACP countries affected
by changes to the EU sugar regime is particularly welcome. This
programme will complement the planned EC assistance to ACP states
for adapting to the changes in production and market conditions
for sugar cane (€165m (£115 million) in 2007 funded
from the EC budget); and thus enhance sustainability in the sector."
8.9 The EC's Erasmus Mundus programme aims, he says:
"… to promote the European Union as a global
centre of excellence in learning, by enhancing the visibility
and attractiveness of European higher education in third countries.
It supports European Masters Courses and funds scholarships for
third-country nationals, as well as scholarships for EU nationals
studying in third countries. ACP students can already benefit
from the programme, but extra funding will support a further 130
scholarships starting in the 2007/08 academic year. The proposed
'window' for ACP students replicates similar 'windows' created
for several Asian countries."
8.10 The UK also welcomes the EC's intention to contribute
to the Trust Fund established to support the Africa Peer Review
Mechanism (APRM), "which supports African-owned efforts to
improve governance. The December 2005 European Council's Conclusions
on the EU Strategy for Africa, expressed support for the APRM."
8.11 Finally, he says that following a seminar held
in Nairobi in January 2005, attended by representatives from 16
African countries, the EC intends to work with UN-HABITAT on a
slum upgrading programme in ACP states. "We welcome this.
Funds will support the completion of feasibility studies for developing
urban sector profiles in a number of African countries. These
profiles will be used to define specific programmes in those countries."
FINANCIAL IMPLICATIONS
8.12 The Minister says that there are no additional
costs to the UK "as this proposal would not increase the
overall size of the 9th EDF budget".
TIMETABLE
8.13 The Minister says that the proposal is currently
under consideration within the ACP Working Group and that, in
order for it to be agreed at the ACP-EC Council on 1-2 June, a
Council agreement will be required by 31 May. "If this is
not possible, the ACP-EC Council may delegate the decision to
the ACP-EC Committee of Ambassadors who meet more regularly."
Conclusion
8.14 This would appear to be a sensible and proportionate
re-allocation of resources, which we are bringing to the attention
of the House because of the widespread interest in the EU's developmental
activities in Africa.
8.15 We now clear the document.
27 The eight goals UN Millennium Development Goals
(MDGs) are those that, in 2000, the UN set itself to achieve,
most by 2015: eradicate extreme poverty and hunger; achieve universal
primary education; promote gender equality; reduce child mortality;
improve maternal health; combat HIV/Aids, malaria and other diseases;
ensure environmental sustainability; and develop a partnership
for development - each with associated targets and benchmarks
to measure progress. Back
| 
