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SPEECH BY THE CHAIRMAN OF THE COMMITTEE OF AMBASSADORS Brussels, 11 January 2008 Or :FR/Rev :AM
Honourable Ministers, Your Excellencies, ACP Ambassadors, Distinguished Representatives of Regional Organisations, Ladies and Gentlemen, On behalf of the Committee of Ambassadors and on my own behalf, I welcome you all to this 8 th meeting of ACP National and Regional Authorising Officers, and take this opportunity to extend my very best wishes for 2008. Honourable Ministers, Excellencies, Ladies and Gentlemen, The present demographic trends and the predictable increase in the world population in the years ahead pose considerable challenges as regards poverty and natural and financial resources. The current trend of diminishing development aid initiatives due to budgetary constraints, the radically altered image of aid as a result of humanitarian crises and persistent conflicts in some ACP regions have generally motivated us, and especially in the context of the implementation of the 10 th EDF, to improve our development management methods in order to be more effective and to ensure a sustainable impact of this cooperation in our countries. In fact, although it is generally accepted that it is the responsibility and prerogative of the ACP States to formulate and implement their own development policies, it is also necessary to bear in mind that, in the framework of our partnership with the European Union, we should continue, nevertheless, to develop common strategies to help ACP Governments and populations move towards achieving sustainable development. In this regard, the Cotonou Agreement is a powerful instrument that allows us to move beyond a formal dialogue with limited scope to an open dialogue on all issues of common interest that involve the most diverse elements of the society. The primary objective of the Cotonou Agreement, namely the fight against poverty, can be attained only if we develop our common vision in this area in the framework of intra-ACP political dialogue, first of all, and subsequently with our partners. In addition, the need to consolidate the ongoing democratization processes, and the growing demand for involvement as expressed by men and women throughout the ACP countries, strongly urge us to widen, deepen and render more transparent the dialogue between one group and another and between one society and another. Deepened political dialogue, with transparent and responsible management of all resources as its basis, and objective should boost the effectiveness of sustainable development aid because such dialogue can only lead to firm, credible commitments to the wellbeing of our populations. This is why the main aspects of the Cotonou Agreement encourage the development of targeted and effective strategies that take account of the establishment, inter alia, of highly efficient administrations and institutions, gender equality, and the principles of environmental protection and resource management. Honourable Ministers, Excellencies, Ladies and Gentlemen, As we are about to commence implementation of the 10 th EDF, we should first of all take note of the important achievements of development cooperation, especially co-management through the role and responsibilities of the National and Regional Authorising Officers, the predictability of resources, the range of areas covered, as well as the role of the joint institutions. This is why the Committee of Ambassadors attaches considerable importance to the maintenance and deepening of our partnership. This partnership consists of a range of relationships that affect key areas including that which brings us together today, namely Development Finance Cooperation. There is no doubt that Development Finance Cooperation is central to our cooperation with the EU. It is indeed fortunate that prior to the entry into force of the revised Cotonou Agreement, you have the opportunity to exchange views on the issues that will affect our future and in respect of which I would like to share some preliminary thoughts with you. I would like, first of all, to touch on the issue of the harmonisation of the EDF rules and procedures with those applied to the Budget. This issue, which is featured on your agenda, has been a source of disagreement between the ACP side and the European Commission since 2005. As a matter of fact, you will recall that no agreement was reached between the two sides on the revision of the contract award procedures in Annex IV to the Cotonou Agreement at the end of the negotiations on the revision of the Cotonou Agreement in June 2005. The proposal submitted to the ACP Group aims to use mainly the Community’s contract award procedures. The ACP Group has expressed the desire to maintain the current mechanism of procedures that were negotiated by the European Union and the ACP States. It believes that the harmonisation exercise will alter the specificity of certain elements of the partnership, notably the co-management aspect. The Group also pointed out that with this harmonisation, the Authorising Officers would find themselves excluded from the drafting and adoption of the rules applicable to the award and execution of contracts. The rules would no longer be negotiated with them but instead be decided unilaterally by the European Commission, on the basis of a practical guide prepared for that purpose. There is reason to fear that this harmonisation exercise might, consequently, allow the Community rules to predominate and lead to them being applied to the detriment of those jointly adopted. Consequently, the Committee of Ambassadors feels that the proposed harmonisation of the EDF procedures with those of the Community budget should be studied very carefully to ensure that it does not eventually lead to technical budgetization of the EDF. This is why, before envisaging the harmonisation of the rules and procedures as proposed by the European Commission, the ACP Group should ensure that any future solution includes guarantees on the fundamental elements of Development Finance Cooperation. Honourable Ministers, Excellencies, Ladies and Gentlemen, The Committee of Ambassadors is aware of the changes that have occurred since the inception of the EDF, especially in the last few years. If the ACP Group remains committed to the European Development Fund, it is because by providing funds for development programmes, the EDF has given rise to a special culture that makes the ACP-EU Partnership a unique model of development cooperation. This is why the principle of aid appropriation, introduced by the Cotonou Agreement, is closely linked to the idea that partnership between donor and beneficiary governments is indispensable to the success of the cooperation. Co-management of aid, one of the particularities of the ACP-EU Partnership, is based on the sharing of responsibilities between the implementing staff. It also involves joint decision-making within the various bodies set up for that purpose, thereby creating synergy in the decision-making process. The predictability and security of funds are essential for they play a decisive role in the medium- and long-term programming of sustainable economic and social development projects and programmes. It is in the light of these various elements that I believe you should conduct your reflections and adopt the ACP Group’s position on the harmonization of the rules and procedures, bearing in mind the need to consolidate an effective partnership on the basis of concerted and consensus decisions, as well as the recent developments and your ability to adapt to them.
Honourable Ministers, Excellencies, Ladies and Gentlemen, I would, at this juncture, like to comment on two particular features of the 10 th EDF. First of all, the issue of Governance Nowadays, the term “good governance” is used to refer to norms of transparent procedures, behaviours and universal principles related to the management of state affairs. This notion is featured as a fundamental element in the Cotonou Agreement that political leaders are obliged to respect. It is an established fact that development, poverty alleviation, security for all and stability depend, to a very large extent, on countries that are able to perform their essential functions that involve three levels of responsibility, namely political responsibility, administrative responsibility and financial and budgetary responsibility. As a result, governance has been included in the development finance dimension of our partnership as a central element in the programming of aid granted by the European Community under the 10 th EDF. Its singular importance has been translated, financially, into the 10 th EDF by way of the establishment of an “incentive tranche”. From now on, good governance will be based on a fundamentally political concept that takes account of the governance profile of each of our countries, with dialogue and reform incentives as the main parameters. As a result, the eligibility criteria will be based on the relevance of the reform plan initiated, its political ambition, and its effective translation into concrete actions . Honourable Ministers, Excellencies, Ladies and Gentlemen, I would now like to raise the issue of budgetary support. As you are aware, in the programming of the 10 th EDF, direct budgetary support has been accorded such importance that it has become the main instrument for channelling Community aid in the framework of our partnership with the EU. Furthermore, the European Commission has proposed to its Member States the creation of a new aid financing mechanism in the framework of the EDF, called “MDG Contracts”. The “MDG Contracts” are aimed at channelling some of the aid granted under the EDF in the form of long-term budgetary support, on a predictable basis and based on the results obtained in the framework of the MDG. This form of aid provided in the framework of the EDF gives de facto support to the balance of payments and state finances of the partner countries. At this point in time, most of this support is provided by the European Commission in the form of “direct” and “non-targeted” aid. Lastly, the “MDG contract” is supposed to provide minimum support practically guaranteed over a six-year period to those countries with the best performance record. In the course of your meeting, you will discuss these issues among yourselves and with the European Commission. Honourable Ministers, Excellencies, Ladies and Gentlemen, I wished to share these few preliminary remarks with you in the hope that they will contribute to your discussions, the conclusions of which are eagerly awaited by the Committee of Ambassadors to enable it to pursue its discussions with the Commission and to safeguard the interests of the ACP Group. Thank you for your attention.
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