European Scrutiny Committee Contents


18 EU External Action: the Instrument for Stability

(30859) 12674/09 + ADD 1 COM(09) 341 Commission Report: Annual Report on the Instrument for St ability in 2008

Legal base
Document originated9 July 2009
Deposited in Parliament17 August 2009
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 20 August 2009
Previous Committee ReportNone; but see (29656) —: HC 16-xxiv (2007-08), chapter 11 (18 June 2008) and (27653-55)—: HC 34-xxxv (2005-06), chapter 11 (12 July 2006)
To be discussed in CouncilTo be determined
Committee's assessmentPolitically important
Committee's decisionCleared

Background

18.1 Towards the end of the previous Financial Perspective, the Commission and Council decided to replace the then plethora of financial instruments for the delivery of external assistance with a simpler, more efficient framework. Instead of the wide range of geographical and thematic instruments that had grown up in an ad-hoc manner over time, the new framework comprises six instruments only, four of them new. The four new instruments are:

—  an Instrument for Pre-Accession Assistance;

—  a European Neighbourhood and Partnership Instrument

—  a Development Cooperation and Economic Cooperation Instrument, and

—  an Instrument for Stability.

18.2 The first three all essentially repackage existing EC activity. The Instrument for Stability, however, is a new instrument to tackle crises and instability in third countries and address trans-border challenges including nuclear safety and non-proliferation, the fight against trafficking, organised crime and terrorism. [66]

18.3 We cleared the draft IfS Regulation on 12 July 2006.[67] At that time, we noted that the then Minister for Europe (Mr Geoffrey Hoon) confirmed that an original concern — how in practice it would be prevented from encroaching on Common Foreign and Security Policy (CFSP) activities and objectives — had been overcome. The later stages of negotiation were difficult precisely because of the need to maintain a clear distinction with CFSP activities; but having worked hard to ensure that activities covered by the Regulation were limited to those falling within the scope of the Community's powers relating to development co-operation and economic co-operation, he was satisfied that the agreed text met concerns in these areas. He said that the Stability Instrument would cater for many of the kinds of activities the existing Rapid Reaction Mechanism was intended to cover as well as other existing Community activities in relation to, for example, combating anti-personnel landmines, reestablishment of civilian administration in DR Congo and Afghanistan, planning economic reconstruction in Iraq and supporting post-tsunami reconstruction around the Indian Ocean — "all of critical importance to the Government's objectives". The Commission would be required to submit all projects for the opinion of the Stability Instrument Management Committee, composed of representatives of all Member States — something on which he said that he had insisted, in order to exercise proper political control.

18.4 The Instrument for Stability was allocated €2.1 billion between 2007 and 2013. The UK's share of the allocation is 17%, i.e. €350.5 million.

The 2008 Annual Report

18.5 An Annual report must be submitted to the European Parliament and the Council in compliance with Article 23 of Regulation (EC) No. 1717/2006 of the European Parliament and the Council of 15 November 2006 establishing an Instrument for Stability (the IfS Regulation). This is, accordingly, the second such Annual Report.

18.6 The instrument is split into short term (70% of funding) and longer term (30% of funding) measures, which work to build capacity to contain and prevent instability in third countries through advising, training and financial support to recipient countries. The Report details progress in 2008 on IfS short term projects and provides an update on the financial commitments for the longer term measures.

18.7 The short term component provides technical and financial assistance to help countries respond to crises or emerging crises. The commitment for 2008 was €137,107,869, which has funded a wide range of projects across a broad range of thematic issues:

¾  short term advice on post-conflict security reform in the Central African Republic, Palestine and Timor Leste;

¾  measures in areas where European Security and Defence (ESDP) missions are deployed, for example in Kosovo and Palestine;

¾  post-conflict support and post-disaster recovery programmes in Georgia, Lebanon, Bangladesh and Peru;

¾  support for the rule of law and transitional justice in Sierra Leone and Solomon Islands.

18.8 Regionally the majority of support has been in Africa (29%), then Asia (17%), the Middle East (12%), Kosovo and Georgia.

18.9 The IfS long term component covers crisis preparedness to trans-regional security threats such as non-proliferation, trafficking, organised crime and terrorism.

18.10 The 2008 Annual Action Programme for trans-regional actions in the areas of organised crime and trafficking (€13.3 million) was adopted in November 2008, and provides funding for the Expert Support Facility (ESF) to identify potential projects using Member State expertise, and for measures in Afghanistan, Africa, Latin America and the Caribbean.

18.11 The 2008 Annual Action Programme for risk mitigation relating to chemical, nuclear and biological materials (€23.5 million) was adopted in December 2008. The programme provides support for alternative employment of former weapon scientists, enhance export controls, and to strengthen the capabilities and intelligence systems to fight illicit trafficking of materials. The 2008 programme has extended the geographical scope beyond the former Soviet Union, to include countries such as Thailand, Egypt, Turkey and China.

18.12 The Commission will complete its first review to evaluate the implementation of the Instrument in its first three years by 31 December 2010.

The Government's view

18.13 In his Explanatory Memorandum of 20 August 2009, the Minister of State at the Foreign and Commonwealth Office (Mr Ivan Lewis) says that the UK supports the IfS measures as part of a comprehensive approach to crisis response. He notes that funding can be deployed rapidly and flexibly following a crisis, complementing other Financial Instruments for External Actions, including European Security and Defence Policy (ESDP) missions:

"For example, in Kosovo the IfS is contributing €10m to support the running costs of the International Civilian Office (ICO). The ICO, headed by International Civilian Representative, Pieter Feith, supports Kosovo 's institutions, implementing UN Special Envoy's Comprehensive Proposal for Kosovo's Status Settlement." 

18.14 The Minister also notes that the IfS longer term measures support UK priorities in the fight against organised crime and counter-proliferation, drawing attention to UK expert participation in 2008 in Expert Support Facility workshops run by the Commission which influence long term work programmes, for example on bio-safety and security.

18.15 The Minister also notes that the Instrument for Stability total allocation of €2.1bn between 2007 and 2013 has been reduced by €240 million, which was transferred to another EU budget line — the Food Facility — to help the Commission's response to the increase in world food prices.

18.16 On the key issue of evaluation, the Minister says:

"With a project length of between 12 and 18 months, some 2008 short term crisis response measures are still being implemented. The Commission has provided a progress report on all 2007 and 2008 measures in the Annex to the Annual Report. The Commission intends to conduct a full evaluation of 2007 and 2008 short term measures in 2009/10, in which the UK is participating. The long term crisis preparedness measures are harder to evaluate at this stage as some 2007 projects have only started to be implemented in 2009."

Conclusion

18.17 The new arrangements appear to have consolidated the good start that we noted a year ago. However, the acid test will be the mid-term review in 2010.

18.18 Though the Report raises no concerns at this juncture, we considered that it warranted a Report to the House because of the magnitude of expenditure, the nature of the issues that the IfS is designed to tackle and the inter-relationship with the Council's ESDP activities.

18.19 We now clear the document.





66   Two existing instruments, for Humanitarian Aid, and for Macro Financial Assistance, were judged not to be in need of modification, and were maintained. See http://ec.europa.eu/external_relations/reform/intro/ip04_1151.htm for further background. Back

67   See headnote. Back


 
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