6 EU External Action: Human Rights
| (27627)
11038/06
COM(06) 354
| Draft Regulation establishing a financing instrument for the promotion of democracy and human rights worldwide (European Instrument for Democracy and Human Rights)
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| Legal base | Art 179 and 181(a) TEC; consultation; QMV
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| Document originated | 26 June 2006
|
| Deposited in Parliament | 30 June 2006
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| Department | International Development
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| Basis of consideration | EM of 13 July 2006
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| Previous Committee Report | None; but see HC 34-xxxv (2005-06), para 11 (12 July 2006)
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| To be discussed in Council | To be determined
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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 Hitherto, the EC's External Actions spending has been funded
from a multitude of diverse instruments and budget lines. As part
of the 2007-13 Financial Perspective, the Commission proposed,
in September 2004, that all External Actions spending should be
rationalized and simplified under one heading (Heading 4) and
implemented under six Instruments. Three new instruments would
support EU external policies directly:
— a
Pre-Accession Instrument (IPA) for candidate and potential
candidate countries covering institution-building, co-operation,
rural development and human resources development;
— a European Neighbourhood and Partnership
Instrument (ENPI) for all countries covered by the European
Neighbourhood policy, to enhance political security, economic
and cultural co-operation and to offer participation in EU activities;
and
— a Development Cooperation and Economic
Cooperation Instrument (DCECI), which would both encompass
co-operation with developed and developing economy partners and
support the poorest countries in reaching the UN Millennium Development
Goals, and which the Commission proposed should incorporate the
successor to the 9th European Development Fund (i.e. that the
EDF should be "budgetised"; a proposal that was not
supported by the Member States).
6.2 These three Instruments would be complemented
by three thematic Instruments, designed principally to
respond to crisis situations until normal co-operation could be
resumed: the existing, essentially unchanged Humanitarian Aid
and Macro Financial Assistance Instruments and a new
Instrument for Stability.[19]
6.3 Both we and our predecessors considered these
documents on several occasions, eventually recommending them for
debate.[20] On 10 November
2005 the European Standing Committee concluded that it "agrees
with the Government that they provide a good basis for discussion
of external actions spending (Heading 4) in the next Financial
Perspectives 2007-2013".[21]
The Council Regulation
6.4 The draft Regulation embodies a new financing
instrument for the promotion of democracy and human rights, the
European Instrument for the Democracy and Human Rights. It would
provide a legal basis for the successor programme to the European
Initiative for Democracy and Human Rights (EIDHR), which expires
at the end of 2006. The new instrument would apply from 1 January
2007 to 31 December 2013.
6.5 In his helpful Explanatory Memorandum of 13 July
2006, the Parliamentary Under-Secretary of State at the Department
for International Development (Mr Gareth Thomas) explains that
this new instrument emanates from what he describes as "lengthy
negotiations with the Commission, Council and the European Parliament".
It forms part of what has now become a package of nine instruments:
a) the European Neighbourhood Partnership Instrument;
b) the Instrument for Pre-Accession Assistance;
c) the Stability Instrument;
d) the Nuclear Safety Instrument;
e) the Development Cooperation Instrument (DCECI),
which would include a number of thematic programmes;
f) the Industrialised Countries Instrument;
g) the Humanitarian Assistance Instrument; and
h) the Macro-Financial Assistance Instrument.
6.6 We have already cleared a) to d).[22]
We still await developments on e) and f), where we understand
that the latter has been "spun off" from the former
in order to give a clearer focus to each of the two separate Instruments
than would have been the case if these very different activities
had remained combined. And, as noted above, g) and h) are existing
Instruments.
6.7 Originally, the Commission proposal was that
human rights would be one of the DCECI thematic programmes. However,
the Minister says that:
"… the European Parliament, in particular,
has wished to continue a separate regulation for the Community's
spend on democracy and human rights, for reasons of political
sensitivity and visibility. A high level trilogue between the
three institutions on June 26th decided to endorse this, and move
forward with its preparation and rapid approval such that the
instrument would become operational once the new FP enters into
force.
"The new instrument will have the specific
purpose of helping meet EU policy objectives on the promotion
of human rights and democracy in external relations. As human
rights and democracy issues are increasingly mainstreamed in geographic
and thematic programmes, the new instrument will complement their
efforts by working at international and regional levels and through
its ability to work in partner countries without host government
consent.
"The instrument will: make possible cooperation
with civil society on sensitive human rights and democracy issues;
provide flexibility to respond to changing circumstances and support
innovation; support objectives and measures at international level;
support trans-national approaches; and support EU work on election
observation.
"The main objectives of the instrument will
be to:
a) enhance respect for human rights and fundamental
freedoms where they are at most risk and provide support and solidarity
to victims of repression and abuse;
b) strengthen the role of civil society in promoting
human rights and democratic reform, develop political participation
and representation, and support conflict prevention;
c) support the international framework for the
protection of human rights, the rule of law and the promotion
of democracy;
d) build confidence in democratic electoral processes
through further development of electoral observation and assistance.
"The proposed Regulation outlines a general
framework for implementation; eligibility criteria; management
procedures; budget allocations and types of financing; procurement
rules; evaluation and review. Strategy papers and annual action
programmes will set out in further detail the support to be provided
from this Regulation."
6.8 Finally, the Minister explains that assistance
under this Regulation is intended to complement other EU assistance,
and to be coordinated with Member State assistance to other countries:
"To that end, in implementation, the Commission will be assisted
by a Democracy and Human Rights Committee of Member States representatives,
and the provisions of Council Decision 1999/468/EC16 (comitology
decision) will apply."
The Government's view
6.9 The Minister says:
"The EU plays a leading role on democracy
and human rights issues and it should continue to maintain a high
profile on such issues. To date there has been much debate on
whether democracy and human rights should be covered as other
thematic programmes within the Development Cooperation instrument
or by a separate instrument. In principle, we see value in a separate
instrument for democracy and human rights. The benefits of this
include a strengthened commitment and higher profile to the issues
of human rights and democracy, and protected funding.
"Promotion of democracy and human rights
also feature among the objectives and measures of the other external
action instruments, including the European Development Fund. We
strongly support the mainstreaming of these issues in all relevant
EU programmes. At the same time, we support the creation of a
separate instrument, which will complement and add value to other
external action programmes, and which will be effective in situations
where other instruments are not suitable. This instrument will
be able to support civil society activities without partner country
governments' consent (which other instruments require). It will
be available where other programmes do not exist or have been
suspended, and it provides for activities which are international
and regional in nature. It will focus on innovative and experimental
approaches to democracy and human rights, which might involve
some risk-taking; work in difficult environments and with challenging
partners; and respond to emerging and unforeseen opportunities.
"In recent years there has been much justified
criticism that the process for implementing the EIDHR[23]
has become slow, inflexible and inefficient. Our view is that
any new instrument that aims to be flexible, responsive and creative
must have a legal basis and management procedures that permits
this. The impact of a separate instrument will be undermined without
such improvements.
"The Regulation sets out the management
procedures allowing flexible responses outside normal planning
frameworks to react to unforeseen and exceptional circumstances.
Also, and compared to current practice, Member States will henceforward
only focus on adopting strategy papers and annual action programmes
rather than detailed projects and programmes. This should lead
to more effective management and swifter handling.
"To further reinforce flexibility, we have
suggested that the Commission maintain an adequate contingency
reserve to use at fairly short notice and/or establish a fast-track
process — without the heavy constraint of calls for proposals
— to facilitate a response to 'windows of opportunity' and
deal with emergencies.
"We are keen to see two specific changes
to the Regulation. Firstly, Article 10 purports to permit delegated
management, in accordance with Article 54 of the Financial Regulation.
Article 54 imposes two requirements before management can be delegated.
First, the basic act (i.e. Regulation) must provide the possibility
for doing so. Second, the basic act must lay down the criteria
for the selection of the bodies, which could be considered for
delegated authority. Article 10 does not do so. Criteria could
either be spelled out in the instrument, or in another document
with cross-references in this instrument.
"Secondly, the inclusion of the phrase 'in
particular by strengthening the role of civil society' in Article
2(1)(a) — which relates to support for democracy and processes
of democratisation — risks the Commission being unduly restrictive.
It could be advantageous to support public bodies like national
human rights commissions, ombudsmen, political party groups or
parliamentary institutions in these areas, even if the national
government is unenthusiastic.
"Whilst the EU's elections observation work
is rightly praised there is pressure to expand election monitoring
work. However, this is resource intensive and imposes huge management
burdens. We believe measures should be put in place to ensure
that the activity does not absorb a disproportionate percentage
of the budget of this new instrument. Any serious increases in
demand for this work raise the argument for the activity to have
its own procedures, budget and management team. While elections
work is important, it should not absorb large sums of money that
could be used for other methods of promoting democratic principles
and human rights.
"Overall the Commission's proposal is very
broad. To ensure the effectiveness of the Instrument, activities
funded from and supported by it need to focus on the added-value
it provides. We will support the Commission in delivering an effective
instrument by engaging actively in the development and review
processes of the Commission's strategy papers, which set out more
detailed objectives and direction of the instrument, and annual
programming plans, and commenting on resource allocation processes,
and other key opportunities."
6.10 On the Financial Implications, the Minister
says that the financial resources for this Regulation during 2007-13
will be €1,103 million, "which is compatible with existing
financial programming and the Preliminary Draft Budget 2007".
6.11 On the Timetable, the Minister says that
the co-decision process is about to begin: "in a first instance,
the European Parliament need to establish its Opinion, followed
by a Council Common Position. This is likely to take place in
early autumn. The process must conclude with a fully adopted,
co-decided regulation by 31 December 2006, to avoid any discontinuity
in funding for the promotion of democracy and human rights."
Conclusion
6.12 We are grateful to the Minister for his comprehensive
explanation of the origins of this change of plan, which is the
result of the democratic process enshrined in the consultation
provisions of the Treaty.
6.13 However, as he makes clear, the result of
these changes is a number of important considerations that have
yet to be finally determined. We should therefore be grateful
if the Minister would submit a further Explanatory Memorandum
once a Common Position has been achieved.
6.14 In the meantime, we shall keep the document
under scrutiny.
19 (26041) 13686/04, COM (04) 626: HC 38-i (2004-05),
para 9 (1 December 2004). Back
20
See headnote. Back
21
Stg Co. Deb. European Standing Committee, 10 November 2005,
cols 3-36. Back
22
See headnote and (27267) 15171/2/05, HC 34-xix (2005-06), para
15 (15 February 2006). Back
23
The European Initiative for Democracy and Human Rights (EIDHR),was
created by an initiative of the European Parliament in 1994, which
brought together a series of budget headings specifically dealing
with the promotion of human rights. See http://ec.europa.eu/comm/europeaid/projects/eidhr/eidhr_en.htm#eidhr2
for further information. Back
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