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September 2017
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EDITO
Monday, 25 September 2017
Commission welcomes the support by the EU Council and the Parliament to offer a complete untying of aid
The European Community has adopted two regulations on the access to EC external assistance that establish an unprecedented level of untying. Giving aid on the condition that it will be tied to the purchase of goods and services from the donor country has been a major impediment to the effectiveness of aid. But this consensual decision represents a remarkable step toward the enhancing of EC aid effectiveness.
The Council and the Parliament have agreed to the Commission’s approach that goes far beyond a trade negotiation between donors. It puts the partner country at the center and advocates an intelligent use of the concept of untying that also supports regional integration, capacity building and the development of local markets. It helps concretely the partner country to become a major actor of its own development not only in political terms but also as an operational actor.
European Commissioner for Development and Humanitarian Aid, Louis Michel, presented this agreement as “a concrete delivery that proves that we have taken seriously the commitments we made on aid effectiveness in the UN Summit”.

In the new regulations, all aid to the Least Developed Countries will be unilaterally untied. All expertise will be untied and based only on its dual criteria of quality and price. Food aid will be untied. In total, this is 30% of all EC aid that will be completely untied. According to international agreed estimations this would create a better value for money up to € 500 million. This goes much further than the existing limited international consensus that covers 2% of aid.
The remaining part of EC aid will be open to other donors upon the condition that they open themselves their own aid, according to the principle of reciprocity. This represents a generous offer for those donors that do not yet untied their own aid. It could bring an additional better value for money of € 1.2 billion.
The regulations also entail several operational simplifications favouring more joint actions between donors. They constitute a further implementation of the principles and commitments agreed by the European Union in the High Level Forum on harmonization and it so-called internationally “Paris Declaration” on aid effectiveness.
EU radically reforms its sugar sector to give producers long-term competitive future
European Union agriculture ministers today (24th November) reached political agreement on a wide-ranging reform of the Common Market Organisation for sugar, based on the proposal tabled by the European Commission in June. The reform will enhance the competitiveness and market-orientation of the EU sugar sector, guarantee it a viable long-term future and strengthen the EU’s negotiating position in the current round of world trade talks. It will bring a system, which has remained largely unchanged for almost 40 years, into line with the rest of the reformed Common Agricultural Policy. The guaranteed price for white sugar will be cut by 36 percent over 4 years; farmers will be compensated for, on average, 64.2 percent of the price cut through a decoupled payment - which will be linked to the respect of environmental and land management standards and added to the Single Farm Payment; countries which give up more than half of their production quota will be entitled to pay an additional coupled payment of 30 percent of the income loss for a temporary period of five years; a generous voluntary restructuring scheme will be established to provide incentives for less competitive producers to leave the sector; intervention buying of surplus production will be phased out after four years. Developing countries will continue to enjoy preferential access to the EU market at attractive prices. Those ACP countries which need it will be eligible for an assistance plan worth € 40 million for 2006, which will pave the way for further assistance.
“I am delighted with this historic agreement,” said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development. “I congratulate ministers for their brave and bold decision to reform a sector that nobody has been able or willing to reform in the past. It has been tough but common sense has prevailed. This agreement will give the EU sugar sector a viable and competitive future. Acting now means we have the funds available to ease the painful restructuring of the sector that is an absolute must, and to compensate farmers. This deal offers the sector long-term certainty. It will not cost a single cent extra in public money. It is also very important externally. Our new policy will be trade friendly, thus strengthening our hand at next month’s WTO Hong Kong Ministerial. Farmers will receive a direct payment largely decoupled from production. From 2009, the world’s poorest countries will have completely free access to our market. The EU will remain an attractive market for developing countries to sell their sugar, and we will offer our ACP partners financial assistance to adapt to the changes. This agreement will also ensure that we come rapidly into line with the recent WTO panel.”
The sugar sector will come into line with the CAP reforms of 2003 and 2004. The reform takes proper account of farmers’ incomes, consumers’ interests and the situation of the processing industry. It will bolster the competitiveness of the EU sugar industry, improve its market orientation and produce a sustainable market balance in line with the EU’s international commitments.
Europe will remain an attractive market place for developing countries to sell their sugar. The Commission is also proposing an assistance scheme for the African, Caribbean and Pacific countries which traditionally export sugar to the EU, initially worth 40 million euros for the second half of 2006. Further long term assistance will be secured for the period 2007-2013, depending on the outcome of the discussions on the Financial Perspectives.

The African, Caribbean and Pacific countries have expressed outrage at the agreement (see press release attached), which is only a 3% smaller cut than the 39% originally proposed. The ACP countries have been significant beneficiaries of the EU system up until now.
They had been pressing for a cut in prices of only 19%, failing which they claimed they stood to lose €300 million a year in direct export earnings and the destruction of their sugar industry.
Friday, 25 November 2005
EU development ministers endorsed a new development aid strategy for Africa on Tuesday, which could include plans to set up a multibillion euro (dollar) common fund to help build roads, phone networks and other key infrastructure projects on the continent.
The fund would gather money from the 25 EU member states as well as other international organisations like the World Bank, EU development aid commissioner Louis Michel said.
Officials said infrastructure plans would be approved on a case by case basis, and carried out by those countries who have the best expertise or link to a certain country or region in Africa.
Michel said such projects were "at the heart of the EU's Africa strategy," which is to be approved by EU leaders at their summit in Brussels next month.
The new EU development aid strategy will focus primarily on alleviating poverty in Africa and on keeping EU governments committed to their promises to double aid to the continent, said Hilary Benn, Britain's international development secretary, who chaired Tuesday's EU talks.
Benn said: "We have shown that we want to deliver better aid as well as more aid."
EU aid to Africa will increase from €17bn ($20bn) to around €25bn ($30bn) by 2010, based on commitments made by EU governments in June.
At least 50% of the increased EU aid will go to sub-Saharan Africa.
The plan foresees faster disbursement of aid to countries most in need, including building infrastructure like roads, rail links and telecommunications. Closer coordination in areas like agricultural trade, fisheries, and migration issues are also mentioned in the plan, as is a new focus on fighting HIV/Aids.
Benn also said the British government, which currently holds the EU presidency, would put forward new aid proposals such as technical assistance for poor countries to help their ability to trade, ahead of key world trade talks in Hong Kong next month.
A report published on 21 November 2005 has attacked what it claims is the overwhelming influence exerted by corporate lobbyists on the trade agenda pursued by the European Commission.
The report, published by NGO group the Seattle to Brussels network, claims that EU trade policy is "being driven by the demands of European businesses for new markets rather than by the needs of developing countries, European citizens or the environment".
The report came on the day EU trade ministers met to set their final agenda for the WTO ministerial conference in Hong Kong on 13-18 December.
The Doha trade round is titled the Doha Development round, but, say the NGO organisations, the facts behind the rhetoric do not back up this claim. Far from promoting development in non-EU countries, the real agenda of the EU, led by the big business lobby, is to force open the markets in these countries for exploitation by European and transnational corporations.
Decentralised cooperation must be recognised as a dimension of European development policy. In her own-initiative opinion on “Decentralised cooperation in the reform of EU development”, adopted by a majority of the Members of the Committee of the Regions during its plenary session of Wednesday, 16 November, Juliette Soulabaille (PES/FR), mayor of Corps Nuds, Vice President of the Community of Agglomeration of Rennes Metropolis and Chair of the Working Group on International Affairs and Decentralised Cooperation of the Association of Mayors of France (AMF) advocates taking more account of the role of local authorities in European development policy. With the support of the Member States, European local authorities have in fact maintained for several years cooperation relations with their counterparts in third countries, in particular in developing countries.
As Mrs Soulabaille emphasises, “they contribute their know-how and experience acquired through exercising various competences, for example in the area of health, education, urban service (water, waste). Their actions are particularly precious in helping local authorities in developing countries to fulfil better their responsibilities resulting from decentralisation”. She regrets, however, that “their contribution to European development policy is to a large extent unrecognised”. In her view “that explains the fluctuating role attributed to them in development policy programmes”. To remedy that situation Mme Soulabaille has put forward various proposals:
- Concerning European local authorities, the wealth of decentralised cooperation should be highlighted and used as the basis for exchanges of experience and drawing up best practices.
- A development-focused political dialogue should be established between the Community institutions and local authorities through the creation of a platform similar to that available to the European development NGOs.
- Moreover, twinning programmes between EU local authorities and those of developing countries should be put in place and locally elected officials in developing countries should be encouraged to set up associations and networks.
- To reinforce these initiatives the basic principles of European development aid should integrate a decentralised approach. That involves, in particular, raising awareness in the European Commission’s delegations of the local dimension so that decentralised cooperation is seen as a way of supplementing cooperation actions at national level.
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