Category Archives: General Development Framework

The European Union’s action in the development cooperation field is based on the principles of effectiveness of aid, coordination between Member States and international players, and consistency of European policies with development objectives.

The “European Consensus on Development” defines the general framework for the action of the Union and Member States. In addition, the Union is particularly committed to honouring the United Nations Millennium Development Goals (MDG), for which the Union has put in place various instruments that will also help reinforce the impact of its action.

Non-state Actors and Local Authorities

Non-state Actors and Local Authorities

Outline of the Community (European Union) legislation about Non-state Actors and Local Authorities

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Development > General development framework

Non-state Actors and Local Authorities

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions – The Thematic Programme “Non-state Actors and Local Authorities in Development” [COM(2006) 19 – Not published in the Official Journal].

Summary

This programme succeeds both the NGO co-financing programmes and the decentralised cooperation programmes. By supporting the right of initiative of non-state actors and local authorities, it supplements the support provided by geographical and other sectoral thematic programmes, in particular the programme on democracy and human rights.

Ownership and participation are core principles of the European Union (EU) development policy as stated in the European consensus. This approach is also reflected in partnership and cooperation agreements, e.g. between the ACP countries and the EU and with Asia, South America and “neighbouring” countries.

The added value of associating various non-state actors lies in their independence from the State, their proximity to and understanding of defined constituencies, their capacity to articulate their specific interests and their ability to bridge a critical gap between strategic goals and their practical realisation.

This programme primarily targets interventions in the field. It is chiefly implemented in countries and regions where geographical programmes do not provide for any financial support for non-state actors or local authorities owing to weak political commitment, in subregions out of reach of the country programme or in situations of difficult partnerships, fragile States, post-conflict, political instability, etc.

All non-profit state actors from the EU and from partner countries can be eligible for funding under this programme. In addition, local authorities may receive financial support for activities in specific contexts where their added value can be established and where these activities cannot be carried out under geographical programmes. This actor-oriented approach will be refined in the multiannual thematic strategy paper.

Three types of action may be funded:

  • actions which strengthen participatory development, support capacity development processes for the actors concerned at country or regional level, and promote mutual understanding processes;
  • awareness raising and education for development in the EU and acceding countries;
  • coordination and communication between civil society and local authority networks, within their organisations and between different types of stakeholders active in the European public debate on development.

Interventions in all developing countries, as defined in the list of Official Development Assistance (ODA) recipients, can be eligible for funding under this thematic programme. These countries are covered by the European neighbourhood and partnership policy (ENPI) and the Development Cooperation Instrument (DCI). The multiannual thematic strategy paper will set the eligibility criteria.

As regards programming, a four-year (2007-2010) and, subsequently, a three-year (2011-2013) thematic strategy paper will be decided by the Commission. These will define in more detail the criteria for selecting priority countries and regions, together with priorities for action. On the basis of this multiannual programming, the Commission will produce annual action programmes that establish priority actions, specific objectives and indicative amounts.

Objectives and priorities

The primary objective of this programme is the eradication of poverty in the context of sustainable development, including pursuit of the Millennium Development Goals (MDG). Other major objectives include good governance and human rights, which are cross-cutting issues to be mainstreamed in interventions in partner countries.

Our priorities include supporting stakeholder participation in unfavourable contexts (e.g. difficult partnerships, instability, conflict), promoting cross-border and regional initiatives, fostering quality partnerships between different stakeholders from the EU and partner countries, strengthening the capacity of employer and worker organisations, and fostering coherence as regards development in the area of education by giving children and young people access to education for development.

Keeping Europe's promises on Financing for Development

Keeping Europe’s promises on Financing for Development

Outline of the Community (European Union) legislation about Keeping Europe’s promises on Financing for Development

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Development > General development framework

Keeping Europe’s promises on Financing for Development

Document or Iniciative

Annual report from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions of 4 April 2007, Keeping Europe’s promises on Financing for Development [COM(2007) 164 final – Not published in the Official Journal].

Summary

This is the fifth annual report from the European Commission on EU progress towards implementing the commitments agreed in 2002 and renewed in 2005 regarding financing for development. These aim to contribute to achieving the millennium development goals (MDG).

The EU is the biggest aid donor in the world and its participation in official development assistance (ODA) is constantly growing. The EU ODA results exceeded expectations in 2006, amounting to EUR 48 billion, which represents an ODA/GNI (gross national income) ratio of 0.42 % and exceeds the target of 0.39 % set for 2006. Despite these very positive results overall, the Commission calls on the Member States which did not meet their individual ODA targets to step up their efforts and asks all the EU countries to mobilise more programmable funds. Some Member States achieved high levels of OPA, notably through debt cancellation for poor countries, but the Commission stresses that such operations are undertaken only once and must be replaced by more stable and predictable development assistance.

As regards the beneficiaries of the assistance, the Member States of the EU-15 already allocate at least 0.15 % of their GNI to the least-developed countries (LDC) or intend to reach this level of assistance by 2010. Almost half the EU aid is intended for Africa. In addition, the EU has decided to allocate over half the aid promised on top of the ODA volumes each year to the continent of Africa.

Despite this overall progress, constant efforts have to be made in order:

  • to guarantee the long-term predictability of aid flows by establishing national timetables by the end of 2007 so as to ensure gradually rising aid levels year-on-year;
  • to ensure the participation of all Member Stats in the effort needed to achieve the 2010 objective;
  • to ensure that the increase in the volumes of ODA are permanent and the results of budgetary efforts real on the part of the Member States;
  • to strengthen the ODA reporting capacities and methodology of Member States to guarantee the comparability of volumes of aid;
  • to facilitate the effective and efficient use of aid volumes. To this end, EU donors should examine their structures and their operative and aid modalities. This process needs to include in particular national plans to strengthen capacity to scale up ODA and the speedy application of the forthcoming Code of Conduct on Division of Labour amongst EU donors.

Some Member States have implemented innovative sources of financing (such as the airline ticket tax for an International Drug Purchasing Facility – UNITAID, and the International Finance Facility for Immunisation – IFFIm) in favour of developing countries. These are stable and predictable sources of finance and lock in long-term budgetary commitments. Nevertheless, they cannot be a substitute for ODA.

As far as the heavily indebted poor countries (HIPC) are concerned, the Commission encourages Member States, in the appropriate international forums, to promote responsible lending and borrowing. This should encompass improved debt management of the developing countries and the promotion of dialogue with the new lenders. In fact, the multilateral debt relief initiative cancels the debt to the International Development Association (IDA), the African Development Fund and the International Monetary Fund (IMF), but does not cover the outstanding loans from other regional development banks.

As far as the aid effectiveness is concerned, most of the objectives set out in the action plan ” Deliver more, better, faster ” are under way:

  • the joint multi-annual strategic planning has already been implemented in all the African, Caribbean and Pacific (ACP) countries, where the 10th European Development Fund (EDF) has enabled joint programming with other donors in the field;
  • following the success of the first edition in November 2006, European Development Days will be held every year.

The following actions have been taken:

  • the adoption of a Code of Conduct on the divison of labour among EU debtors
  • a revised EU Donor Atlas, including the first regional (West Africa) and country (Mozambique) editions;
  • EU Roadmap on the harmonisation of aid;
  • the removal of all the obstacles to co-financing.

In 2006 initiatives designed to increase the resilience of developing countries to external economic shocks (price vulnerability) and natural events (disasters, climate change and pandemics) have been drawn up and implemented. However, Member States paid little attention to them and progress is limited. To improve this situation, the Commission suggests certain measures to Member States, such as:

  • a common EU approach to disaster prevention and preparedness;
  • strengthening support for developing new instruments and methods to reduce adverse effects of external shocks on developing countries;
  • active participation in the International Task Force on Commodity Risk Management.

As regards untying aid, the EU has made more progress than other international donors. However, the Commission encourages Member States to untie all their aid. In 2006 the Community untying regulations were translated into the new financial cooperation instruments under the EC budget.

The Commission stresses the need to improve EU coordination within the international financial institutions (IFI) through increased dialogue and information sharing, whilst recognising the progress made in this field. It also proposes to reinforce the European voice within the IFI, while at the same time enhancing the voice of developing countries.

The EU confirms support for global public goods (GPG) and has made notable progress towards enhancing the supply of priority GPG, for example in health and environmental matters. Nevertheless, its actions will not be linked to the recommendations of the International Task Force, although it continues to take on the “responsible leadership” role.

Background

In 2005 the Commission gave fresh impetus to the EU development policy with the adoption of a Development Policy Framework 2006-2010. It takes stock of whether the commitments entered into are being met by adopting a package of measures comprising this Communication and two others (please see ‘Related Acts’).

Key figures in the act
  • EU ODA in 2006: EUR 48 billion.
  • EU ODA/GNI ratio in 2006: 0.42 % (target: 0.39 %).
  • The most generous donor Member States: Sweden (which allocates 1 % of its GNI to aid), Luxembourg (0.89 %), the Netherlands (0.81 %) and Denmark (0.80 %).
  • The EU-15 Member States allocating the least: Greece (0.16 %), Italy (0.20 %) and Portugal (0.21 %).
  • The new Member States (EU-10) have doubled their ODA since their accession.

Related Acts

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions From Monterrey to the European Consensus on Development: honouring our commitments [COMM(2007) 158 final – Not published in the Official Journal].

This political Communication introduces the two Specific Communications “Keeping Europe’s promises on Financing for Development” and “Towards an EU Aid for Trade strategy – the Commission’s contribution”.

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled ” Towards an EU Aid for Trade strategy – The Commission’s contribution ” [COM(2007) 163 final – Not published in the Official Journal].

Code of Conduct on Complementarity and the Division of Labour in Development Policy

Code of Conduct on Complementarity and the Division of Labour in Development Policy

Outline of the Community (European Union) legislation about Code of Conduct on Complementarity and the Division of Labour in Development Policy

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Development > General development framework

Code of Conduct on Complementarity and the Division of Labour in Development Policy

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 28 February 2007 entitled “EU Code of Conduct on Division of Labour in Development Policy” [COM(2007) 72 final – Not published in the Official Journal].

Summary

The present Communication proposes a Code of Conduct to enhance complementarity and the division of labour amongst EU donors (Union and Member States) in developing countries. The Code of Conduct was adopted on 15 May 2007 by the General Affairs and External Relations Council and the representatives of the governments of the Member States meeting within the Council. On that occasion, the Council amended certain points of the Commission proposal, in particular adding an eleventh principle to the ten principles proposed.

Donors frequently concentrate on the same countries and the same sectors. This leads to a significant administrative burden and high transaction costs in the beneficiary countries, diffuses policy dialogue, reduces transparency and increases the risk of corruption. Some countries, on the other hand, are almost ignored by donors.

The Code of Conduct defines the operational principles of complementarity in the field of development cooperation. In the absence of an internationally recognised definition of complementarity, the Commission defines it as the optimal division of labour between various actors in order to achieve optimum use of human and financial resources. This implies that each actor focuses its assistance on areas where it can add most value, given what others are doing.

The Code is based on good practices from the field and was drafted in collaboration with Member States’ experts. It builds on the principles contained in the Paris Declaration on the effectiveness of development aid (ownership, alignment, harmonisation, management by results and mutual responsibility ) and on the complementary objectives and values stressed in the European Consensus.

The Code proposes broad guidelines which establish the principles of complementarity in development aid. In particular, the Code consists of eleven guiding principles:

  • concentrate the activities on a limited number of national sectors (focal sectors). EU donors should confine their assistance in a partner country to two sectors in which they offer the best comparative advantage, as recognised by the government of the partner country and the other donors. Apart from these two sectors, donors can provide budget support and finance programmes relating to civil society, research and education;
  • redeploy into other activities in-country (non-focal sectors). As regards the non-focal sectors, donors should either remain committed through a delegated cooperation/partnership agreement * redeploy the resources becoming available in general budget support or exit from the sector in a responsible manner;
  • encourage the establishment, in each priority sector, of a lead donorship arrangement responsible for coordination between all the donors in the sector, with a view to reducing the transaction costs;
  • encourage the establishment of delegated cooperation/partnership arrangements through which a donor has the power to act on behalf of other donors concerning the administration of funds and dialogue with the partner government on the policy to be implemented in the sector concerned;
  • ensure appropriate support in the strategic sectors. At least one donor should be actively involved in each sector considered relevant for poverty reduction. In addition, there should be a maximum of three to five active donors for each sector;
  • replicate this division of labour at regional level through the application of the principles of the in-country division of labour in cooperation with the partner regional bodies;
  • designate a limited number of priority countries for each donor through dialogue within the EU;
  • grant adequate funding to the countries which are overlooked as far as aid is concerned and which are often fragile countries whose stabilisation would have positive repercussions for the region as a whole;
  • analyse and expand areas of strength: the EU donors should deepen the evaluations of their comparative advantages with a view to greater specialisation;
  • pursue progress on other aspects of complementarity, such as its vertical * and cross-modality/instruments dimensions;
  • deepen the reforms of the aid systems: the changes suggested by the Code require reforms of a structural nature and in terms of human resources.

The Commission believes that this Code of Conduct will enable the Union to play a driving role on matters of complementarity and the division of labour as part of the international harmonisation and alignment process (Paris Declaration).

Successful implementation will largely depend on the role of the Commission delegations and Member States’ field offices. In addition, its implementation is to be the subject of annual monitoring based on sampling of relevant country cases, a revised EU Donor Atlas and the Development Report.

The Code of Conduct is an ongoing document; it is to be reviewed regularly on the basis of the lessons learned from its implementation and the monitoring of the results.

Background

The objective of promoting the division of labour in EU development policy is not new. In 1995 and 1999, the Council had already adopted Resolutions on complementarity between the Community development cooperation policy and the policies of Member States. Then the Statement on Development Policy of November 2000 was an attempt to achieve operational complementarity between the Commission and the Member States on the basis of areas of added value for Community assistance. However, this approach gave rise to political and operational difficulties. In 2004 the EU decided to draw up an operational strategy towards complementarity the result of which is the present Communication. In addition, this commitment to enhanced complementarity has become a central element of the European Consensus and the Aid Effectiveness Action Plan.

Key terms used in the act
  • In-country complementarity: ensure balanced funding between all the sectors, transcending their political interest.
  • Cross-country complementarity: ensure that the EU has an overall, more regular presence in all the developing countries, by correcting the current imbalance arising from the fact that too many donors concentrate their efforts on certain efficient countries, often disregarding fragile countries.
  • Delegated cooperation: a practical arrangement where one donor (a “lead” donor) acts with authority on behalf of one or more other donors (the “delegating” donors or “silent partners”). The practical implementation modalities are defined between leading and delegating donors.
  • Vertical complementarity: ensuring synergies between similar activities in several areas undertaken at national, regional or international level.

Mid-term report on policy coherence for development

Mid-term report on policy coherence for development

Outline of the Community (European Union) legislation about Mid-term report on policy coherence for development

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Development > General development framework

Mid-term report on policy coherence for development

Document or Iniciative

Commission working paper of 20 September 2007 – EU report on policy coherence for development [COM(2007) 545 final – Not published in the Official Journal].

Summary

The European Union (EU) is seeking to increase the effectiveness of its development aid by endeavouring to ensure policy coherence for development (PCD), i.e. synergies between development goals and other European policies. This concept was first presented in a Communication from the Commission in 2005 and constitutes one of the objectives of the consensus on development. Within this framework, the EU’s commitment is based on 12 themes (trade, the environment, climate change, security, agriculture, fisheries, the social dimension, employment and decent work, migration, research, the information society, transport and energy).

The report concludes that substantial progress has been made towards more policy coherence. Firstly, the European institutions have become more aware of the external impact of EU policies other than development policy. And secondly, organisational mechanisms have improved both at EU and at Member State level. Despite this progress, much remains to be done to promote PCD, the main obstacles being policy priority conflicts and conflicts of interest between Member States and between developing countries. Sometimes this is accompanied by insufficient capacity and lack of awareness amongst non-development departments.

The report evaluates the state of play with PCD by reviewing several Community policies, namely:

  • Trade: the EU promotes the integration of developing countries in international trade, through the negotiation of economic partnership agreements, the generalised system of preferences generalised system of preferences and measures to assist trade in particular. Moreover, the Commission is improving its preference rules. At multilateral level, the EU was one of the main promoters of the Doha development agenda of the World Trade Organisation (WTO).
  • The environment: developing countries, most of which are threatened by environmental degradation, benefit indirectly from EU policy in this field. Moreover, the EU is prepared to assist them in complying with changes to its environmental standards and supports their effective participation in multilateral agreements concerning the environment.
  • Climate change: developing countries will be affected most by climate change and therefore will benefit directly or indirectly from EU policy in this field. A global climate change alliance with developing countries, proposed by the Commission, will constitute significant progress towards integrating this issue in the political debate with developing countries and in cooperation programmes.
  • Security: the EU is strengthening the links between development and security by integrating conflict prevention in cooperation programmes, promoting transparent and fair natural resource management and supporting disarmament, demobilisation and reintegration programmes in particular. However, progress remains to be made, for instance as regards the reinforcement of organisational mechanisms at the Commission and the Council in order to develop a link between security and development policies.
  • Agriculture: the European Community has come a long way in making the Common Agricultural Policy more development-friendly. Since 2003, trade-distorting measures such as domestic and export subsidies have been significantly reduced and the EU has proposed to adopt the same approach in negotiations with the WTO. In addition, it supports agricultural and rural development in developing countries, in Africa in particular.
  • Fisheries: following the reform of the EU fisheries policy, partnership agreements in this sector have become more coherent with development goals. Among the important issues in this sector, the report underlines the development of fisheries activities in developing countries through efficient use of financial contributions received under the agreements.
  • The social dimension of globalisation, employment and decent work: the promotion of these values is part of Europe’s social agenda and of the consensus on development. At the international level, the EU supports actions concerning the social dimension of globalisation and decent work. This is accompanied, at regional and national level, by increasing integration of employment and social issues in the dialogue, cooperation programmes and trade relations with developing countries.
  • Migration: on the basis of the progress in establishing a political framework and initiating a political dialogue with developing countries at the regional and country level, the EU must currently concentrate on elaborating concrete measures.
  • Research: developing countries benefit from research projects funded by the EU in areas of global interest. Moreover, the EU contributes directly to the building of their capacities through specific international development projects. Nevertheless, progress is needed to promote participation of these countries in theResearch Framework Programme, which is hampered by insufficient human and institutional resources in this field.
  • The information society: in order to promote information and communication technologies in developing countries, the EU must support political dialogue and capacity building, following an approach based on private investment in this infrastructure and government action aimed at creating a favourable regulatory environment. This should be accompanied by more generalised access to research and education networks.
  • Transport: EU action in developing countries consists in setting international standards and in cooperation in international projects, and in policy aimed at developing environmental, social and security standards applicable to modes of transport entering EU territory and to its own fleets. Moreover, the EU is aiming at promoting sustainable transport in these countries directly.
  • Energy: the EU has adopted several measures in favour of developing countries, such as the EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI), the EU-Africa infrastructure partnership and the EU-Africa energy partnership. In addition, these countries will benefit from the efforts of the new EU energy policy in terms of energy supply diversification and the development of renewable energy sources.

Associated Acts

Council conclusions on policy coherence for development (PCD). General Affairs and External Relations Council – 20 November 2007 [Not published in the Official Journal].

Council conclusions on coherence between EU migration and development policies. General Affairs and External Relations Council – 20 November 2007 [Not published in the Official Journal].

Council conclusions on security and development. General Affairs and External Relations Council – 19 November 2007 [Not published in the Official Journal].

Role of the European Union in the multilateral system of the UN

Role of the European Union in the multilateral system of the UN

Outline of the Community (European Union) legislation about Role of the European Union in the multilateral system of the UN

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Development > General development framework

Role of the European Union in the multilateral system of the UN

The EU develops relationships and builds partnerships with third countries and international, regional or global organisations which share its principles and values. It promotes multilateral solutions to global problems, in particular within the framework of the United Nations (UN) (Article 21 of the Treaty on EU).

The EU therefore contributes towards strengthening the effectiveness of the multilateral system and reforming the system of governance of the UN *, for a stronger international society founded on the proper functioning of international institutions and due process of law.

In addition, the European security strategy highlights the fundamental role of the Charter of the United Nations as a framework for international relations and the vital role of the UN Security Council in maintaining peace and global security.

EU participation in the UN system

The EU has had the status of observer member within the UN since 1974. Since the entry into force of the Treaty of Lisbon, the EU has had legal personality and sole capacity to represent the Member States at the UN (Resolution 665/276 of the UN General Assembly). These representation duties are performed by the President of the European Council, the High Representative, the Commission and the EU delegations.

The EU also has an essential role in the development, adoption and implementation of its partner countries’ multilateral commitments.

Finally, the partnership between the EU and the UN is based on political and operational cooperation for the completion of joint programmes and projects. In this respect, the combined financial contribution of the EU and its Member States is one of the main sources of the UN’s budget.

The principal areas of cooperation are as follows:

  • maintaining peace and security in the world, through a full partnership ranging from conflict prevention to reconstruction and peacebuilding. The EU’s contribution takes the form of human and financial resources. In addition, the EU’s foreign and security policy (CFSP) allows an increase in civil and military cooperation. This partnership extends to reform of the security sector, mediation and conflict management capacity, the combating of illicit trafficking in small arms and ammunition, and the promotion of the role of women in peace processes;
  • the promotion of human rights, gender equality and democracy, by defending standards and mechanisms for the protection of human rights, within the UN and through bilateral cooperation. Action in this area concerns, in particular, the rights of women and children, electoral assistance and the strengthening of parliaments, legal systems and civil society;
  • human, economic and social development, particularly by coordinating action in the field of development assistance and humanitarian aid. The fight against poverty and the achievement of the Millennium Development Goals (MDGs) represent priorities for cooperation, including through the UN’s agencies, funds and thematic programmes;
  • environmental protection and tackling climate change, particularly for the adoption of agreements and international conventions, and for the reform of international environmental governance;
  • humanitarian assistance and food aid, in particular through the UN’s special mandate and aid from the EU, which is the largest sponsor of operations undertaken worldwide. The partners are also committed to risk management, assessing the needs of third countries and reform of the humanitarian system;
  • the fight against international and regional threats to security, such as terrorism, the proliferation of small arms and light weapons, organised crime, drug trafficking and money laundering.
Key terms
  • Multilateral governance: a method of organisation of international relations, involving more than two States.
  • System of governance of the UN: a concept defined by the Commission as applying to the main bodies of the UN (the General Assembly, the Economic and Social Council and their subsidiary bodies, the Security Council, the Secretariat), and the programmes, funds and specialised institutions of the United Nations, including the Bretton Woods institutions (the World Bank and the International Monetary Fund).

Untying aid to developing countries

Untying aid to developing countries

Outline of the Community (European Union) legislation about Untying aid to developing countries

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Development > General development framework

Untying aid to developing countries

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 18 November 2000: Untying: Enhancing the effectiveness of aid [COM (2002) 639 final – Not published in the Official Journal].

Summary

In its communication the Commission proposes untying all Community aid and bilateral aid from the fifteen Member States, subject to the agreement of the beneficiary country and reciprocity on the part of other donors.

Tied aid is aid given on the condition that the beneficiary will use it to purchase goods and services from suppliers based in the donor country. “Untying aid” therefore means opening up those purchases to suppliers based elsewhere than just in the donor country.

COMMISSION RECOMMENDATIONS

Information

The Commission proposes to:

  • work systematically at European level to improve communication to all donors about the effect of unrestricted untying of all aid and the effectiveness of this approach, and about the allocation of resources and development structures and agents;
  • launch specific initiatives with each Member State, to work in partnership to improve the communication of information about the relation between untying aid and decentralisation, as well as about the harmonisation of procedures and the role of the beneficiary country.

Revision of financial instruments for development

In order to further untie Community aid, the Commission proposes, for policies and procedures defined at Community level and for the partnership agreements, making changes to the legal bases of a whole series of financial instruments involved in Community aid. The Commission’s stated preference is for revising each financial instrument gradually, introducing common concepts.

Untying all food aid

The Commission recommends that the untying of aid already agreed to by donors within the framework of the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) should be continued and extended with a view to untying all aid, based in particular on complete reciprocity between donors. The Commission also advocates untying all food aid (which is excluded from the scope of the DAC recommendation) and its delivery, and proposes including these points in the renegotiation of the Food Aid Convention approved by the members of the Food Aid Committee (Argentina, Australia, Canada, the European Community and its Member States, Japan, Norway, Switzerland and the United States).

Issues relating to the untying of Member State bilateral aid

The Commission calls on all concerned parties in the European Union to comply with the rules of the internal market and the public procurement Directives. The part of the EC Treaty relating to the movement of goods and services, and the EU rules on public procurement prohibit any criteria that discriminate in favour of national businesses to the detriment of traders in other EU countries. Tied bilateral aid could be in breach of Community competition legislation and the rules of the internal market and the principle of non-discrimination laid down in Article 12 of the EC Treaty.

The Commission proposes that the Member States undertake to untie aid in the case of contracts awarded by the authorities of the beneficiary country not acting for or on behalf of a Member State contracting authority, and systematically insert a contractual clause in the instruments granting the aid which obliges the authorities of the beneficiary country to apply award procedures based on the fundamental principles of the public procurement Directives such as equal treatment, transparency, mutual recognition and proportionality.

GENERAL FRAMEWORK

Background

At the high-level meeting of the OECD-DAC, the Commission undertook to apply the spirit and objectives of the DAC’s recommendation on untying aid(the untying is limited to the least-developed countries (LDCs), but DAC members are called upon to apply it as extensively as possible). The conclusions of the Barcelona European Council in March 2002 also confirmed that the EU was determined to further step up the discussions on untying aid.

Untying Community aid: the situation

Community aid has been largely untied for more than 25 years, going beyond even the DAC recommendation. The invitations to tender are open to the Member States and all the ACP countries, plus all the Mediterranean partner countries under the MEDA programme and to the beneficiary countries of Latin America and Asia (ALA). Furthermore, Community aid has increasingly been directed towards balance of payments and budget support, which is, by definition, completely untied.

In keeping with the Commission’s undertakings, the revision of the Community Financial Regulation introduced the provisions needed to continue untying Community aid. Regulation (EC) No 2110/2005 (repealed by Regulation No 1905/2006) and Regulation (EC) No 2112/2005 (repealed by Regulation No 1085/2006), on access to Community external assistance, aimed to apply the principle of untying aid to the poorest developing countries to all Community development aid instruments (both thematic and geographical).

The advantages of untying aid

Untying aid is a major theme of the ongoing debate about the coherence and effectiveness of the aid given and the credibility of the donors. The Commission’s approach is based on the idea that untying aid is a way of increasing transparency and responsibility in the management and provision of aid.

Advocates of untying aid also stress that it improves the aid’s effectiveness. It would facilitate budget support, aiming to dissociate aid from commercial interests in each donor country, since the association of the two is a major cause of inertia. It is also widely accepted that untying all aid increases the value of public development aid by providing better cost-effectiveness, thus increasing the total financial resources available for development operations. It is estimated that tying aid increases the cost of many goods and services by between 15 and 30 %.

Translating the Monterrey Consensus into practice

Translating the Monterrey Consensus into practice

Outline of the Community (European Union) legislation about Translating the Monterrey Consensus into practice

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Development > General development framework

Translating the Monterrey Consensus into practice

Document or Iniciative

Commission Communication to the Council and the European Parliament of 5 March 2004 – Translating the Monterrey Consensus into practice: the contribution by the European Union [COM (2004) 150 final – Not published in the Official Journal].

Summary

In its annual progress report, the Commission takes stock of the eight commitments it made at the Barcelona European Council in March 2002 and defended at the Monterrey conference on financing for development.

Financial resources for official development assistance

The report concludes that for the second consecutive year the Member States are well on track to meet this essential commitment and may even exceed the target set. Despite a difficult budgetary situation in many Member States EU countries increased official development assistance (ODA) in 2002 by 5.8 % in real terms compared to 2001 and provided 0.35 % of their collective gross national income (GNI).

ODA rose significantly in Sweden, France, Greece and Italy and also increased in Belgium, Finland and Portugal, but decreased in Austria, Denmark, the Netherlands, Spain and the United Kingdom.

This report covers the enlarged EU, which has ten new Member States. These new Member States collectively allocated only 0.03 % of their GNI to development assistance in 2002. However, the Commission considers that this percentage could rise threefold in real terms to 0.11 % by 2006.

The Commission calls on Member States to maintain or increase their annual ODA pledges for the period up to 2006, in order to safeguard the progress the EU is making to deliver on the commitments it made at the Monterrey conference.

Coordination of policies and harmonisation of procedures

On this commitment, the report concludes that the EU has not always succeeded in significantly increasing coordination of its development policies or harmonising procedures for implementing assistance.

There is therefore still much to be done to ensure that resources which continue to be limited are used in the best possible way. Most Member States still wish to apply their own procedures when it comes to managing development aid resources in beneficiary countries. Many beneficiary countries are faced with a whole range of requirements in terms of reporting, different accounting standards, etc. and this is an administrative burden which is likely to seriously compromise their already limited administrative capacities. Member States deny themselves major productivity gains by duplicating their officials’ efforts, particularly in analysing the political framework of beneficiary countries.

Consequently the Commission proposes a whole range of practical measures:

  • closer coordination between EU donors in the development field;
  • closer coordination for multiannual programme and analysis;
  • establishment of a common framework for aid implementation procedures;
  • a Community action plan for coordination and harmonisation in each partner country under which two EU donors or more will implement a cooperation programme.

Other commitments

The report indicates that there is no need to take any particular measures at Community level to meet the other six Barcelona commitments and efforts should focus on activities already under way to ensure that they are successfully completed.

Concrete measures have been taken in recent years to meet commitments to untie aid and debt relief. Encouraging progress has been made on global public goods, trade-related aid and new sources of financing, although this is due more to individual Member States’ efforts rather than the EU as a whole.

Barcelona commitments

In Barcelona the EU undertook to:

  • increase average ODA from the European Union from 0.33 % of GNI in 2002 to 0.39 % by 2006 as a step towards the 0.7 % target set by the United Nations;
  • improve aid effectiveness through a process of coordination and harmonisation and take concrete measures in this direction before 2004;
  • take measures to untie aid for Least Developed Countries (LDC);
  • increase trade-related assistance;
  • support the identification of the relevant global public goods;
  • continue to examine innovative sources of financing;
  • support reform of international financial systems;
  • pursue efforts to restore debt sustainability in the context of the enhanced Heavily Indebted Poor Countries (HIPC) initiative.

The Monterrey conference on financing for development

The international conference on financing for development held in Monterrey (Mexico) from 18 to 22 March 2002 established a consensus on financing for global development in developing countries. The EU, which provides over 50 % of official development assistance at international level, played a major role in the success of this conference. The EU defined its contribution to the Monterrey conference at the Barcelona European Council in March 2002.

Related Acts

Annual report from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions of 4 April 2007, Keeping Europe’s promises on Financing for Development [COM(2007) 164 final – Not published in the Official Journal].

Communication from the Commission to the Council and the European Parliament – Accelerating progress towards attaining the Millennium Development Goals – Financing for Development and Aid Effectiveness [COM(2005) 133 final – not published in the Official Journal].

The EU contribution towards the Millennium Development Goals

The EU contribution towards the Millennium Development Goals

Outline of the Community (European Union) legislation about The EU contribution towards the Millennium Development Goals

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > General development framework

The EU contribution towards the Millennium Development Goals (MDGs)

Document or Iniciative

Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee of 12 April 2005: Speeding up progress towards the Millennium Development Goals – The European Union’s contribution – [COM(2005) 132 final – Not published in the Official Journal].

Summary

At the 2000 Millennium Summit the international community adopted the Millennium Declaration, committing itself to a global project designed to definitively reduce the many aspects of extreme poverty. There are eight Millennium Development Goals (MDGs), with specific targets related to the Millennium Declaration:

  • eradicating poverty and hunger in the world;
  • achieving universal primary education;
  • strengthening gender equality;
  • reducing child mortality;
  • improving maternal health;
  • combating HIV/AIDS, malaria and other diseases;
  • ensuring environmental sustainability;
  • developing a global partnership for development.

The European Union (EU) made specific commitments to achieve these goals by 2015. The Commission stresses that the Community and its Member States have already made a substantial contribution to the efforts of the international community. The EU is now the largest aid donor (55 % of global ODA). Despite that, progress in achieving the MDGs must speed up. The goals cannot be achieved simply by pursuing the same policies as before.

For the EU’s contribution to the UN Summit in September 2005 and with a view to speeding up progress towards the MDGs, the Council asked the Commission to draw up ambitious proposals for the 2015 target date, emphasising financing for development, policy coherence for development and the focus on Africa. The Commission’s proposals basically aim to:

  • set new intermediate targets for growth in official aid budgets by 2010 with a view to achieving the overall target of 0.7 % of gross national income (GNI) by 2015;
  • speed up reforms that will improve the quality of aid;
  • rethink the way that the EU, through its own model of sustainable development and its internal and external policies, influences the conditions for development;
  • ensure that Africa is the number one beneficiary of these new approaches and seize new opportunities for partnership between the two continents.

More resources are needed

The Commission is inviting the Member States to continue to increase their official aid budgets and to go beyond their Monterrey commitment. It is proposing to set a new minimum individual target of 0.51 % ODA/GNI (0.17 % for new Member States) to be achieved by 2010, raising the EU collective average to 0.56 %. This commitment would generate an additional EUR 20 billion by 2010, enabling the target of 0.7 % of GNI set by the UN to be reached by 2015.

New sources of financing that are additional to ODA must also be sought. These should be permanent and predictable in the long term.

Better-quality aid

What is needed as well as more international aid is donor harmonisation and alignment on the partners’ own strategies, in the interests of efficiency gains and lower transaction costs. The current lack of harmonisation imposes administrative burdens and needless costs on the partner countries.

Trade at the service of development

Improvements in development cooperation will not suffice to meet the challenge of the MDGs. Policies other than aid can have a fundamental role to play in assisting developing countries attain the MDGs. Against this background, the communication on policy coherence for development identifies policies that can obviously make a contribution to the developing countries’ efforts.

Focus on Africa

Many parts of sub-Saharan Africa lag far behind the rest of the world in reaching the MDGs. The Commission intends to focus on Africa and support African States so that they bear the primary responsibility for their own development.

To this end, the EU intends to focus on areas such as:

  • improving Africa’s governance: This can be done through financial support to the African Union (AU), twinning partnerships with its institutions, and by replenishing the Peace Facility for Africa to support African peacekeeping efforts;
  • interconnecting Africa’s networks and trade: Regional infrastructure networks and services must be created and sustained so that economic growth and trade become competitive and so that Africa’s exporters can find their place in the global market. In this respect, the Commission has set up a Europe-Africa partnership on infrastructure. There must also be more and better trade for sub-Saharan Africa;
  • striving towards equitable societies, access to services, decent work and environmental sustainability: The EU will support initiatives in this respect. Together with its African partners, it will further develop participatory approaches for local, national and regional planning and budgeting of resources. Development should also include environmental sustainability. The EU will implement concrete policy measures to increase the importance of criteria such as equity and environmental sustainability in the determination of aid allocations for African, Caribbean and Pacific (ACP) countries.

RELATED ACTS

European Report on Development of 19 September 2008 “Millennium Development Goals at Midpoint: Where do we stand and where do we need to go?” (pdf ).
This Report assesses the achievement of the MDGs by 2015. Despite the economic growth of certain countries and the reduction in world poverty since 2000, the progress of developing countries has been unequal. Delays suffered by some countries in terms of health and education are particularly worrying.
In line with the commitments made by the EU and the international community, the level of public aid for development must be increased quickly. Countries receiving aid must commit to improve their economic and institutional governance. They should in particular contribute to the fulfilment of the Accra Agenda for Action (AAA) for the quality and effectiveness of public aid (harmonisation of public procedures and public procurement systems, coordination of providers of funds, transparency and mutual accountability).
Financial aid adds to and supports development aid programmes. Thus, full achievement of the MDGs must take place in a coherent political framework, founded both on fair economic growth and on sectoral development policies. The coherence of international policies and programmes is an essential factor to achieve these goals (particularly in the areas of global economic governance, open markets, immigration, climate change and risk management).
The weaker States, defined as those lagging furthest behind in terms of achievement of MDGs, must be protected as a priority, in particular in the context of the global crisis.
In 2008, the role of the EU as the largest provider of funds and main partner in global peacekeeping operations remains a major one. Its development policy supports regional integration through trade.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 9 April 2008 – The EU – a global partner for development – Speeding up progress towards the Millennium Development Goals [COM(2008)177 final – Not published in the Official Journal].
This Communication identifies the measures that need to be taken to speed up progress towards the MDGs as regards the volume and effectiveness of development aid, aid for trade and policy coherence. It also contributes to the formulation of a Community position with an eye to the Conference on Financing for Development to be held in Doha in December 2008 and the High-Level Forum on Aid effectiveness to be held in Accra in September 2008.

 

Policy coherence for development

Policy coherence for development

Outline of the Community (European Union) legislation about Policy coherence for development

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > General development framework

Policy coherence for development

Document or Iniciative

Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee of 12 April 2005 – Policy Coherence for Development – Accelerating progress towards attaining the Millennium Development Goals [COM(2005) 134 final – not published in the Official Journal].

Summary

When exploring ways to accelerate progress towards achieving Millennium Development Goals (MDG), the European Union (EU) must consider how non-aid policies can assist developing countries in attaining the MDGs. The EU activity in this field is not only a key political commitment in the context of the MDGs, but also has a firm legal basis in the Treaty establishing the European Community (Article 178).

In this communication, the Commission identifies eleven priority areas, other than aid, where the challenge of attaining synergies with development policy objectives is considered particularly relevant. It has defined general guidelines for each of these priority areas, plus a number of specific measures to help speed up progress towards the MDGs.

Trade

The EU is strongly committed to ensuring a development-friendly and sustainable outcome for the Doha Development Agenda and the Economic Partnership Agreements with African, Caribbean and Pacific countries (ACP). The EU will further improve its Generalised System of Preferences, with a view to effectively enhancing developing countries’ exports to the EU. It will continue to work towards integrating trade into development strategies and will assist developing countries in carrying out domestic reforms where necessary.

Environment

The EU will play a leading role in global efforts to curb unsustainable consumption and production patterns. It will assist developing countries in implementing the Multilateral Environmental Agreements (MEAs), and will work to ensure that the capacities of these countries are taken into account during MEA negotiations. The EU will continue to promote pro-poor environment-related initiatives and policies, and will sharpen the focus on climate and environmental change in its own policies.

Security

The EU will treat security and development as complementary agendas, with the common aim of creating a secure environment and breaking the vicious circle of poverty, war, environmental degradation and failing economic, social and political structures. It will enhance its policies in support of good and effective governance and the prevention of conflict and state fragility, including by strengthening its response to difficult partnerships/failing states. It will strengthen the control of its arms exports, particularly to ensure that EU-manufactured weaponry is not used against civilian populations or to aggravate existing tensions or conflicts in developing countries. The EU will promote cooperation in fighting corruption, organised crime and terrorism.

Agriculture

The EU will continue its efforts to minimise the level of trade distortion related to its support measures to the agricultural sector, and facilitate developing countries’ agricultural development.

Fisheries

The EU will continue to take due account of the development objectives of the countries with which the Community will sign bilateral fisheries agreements. Within the context of the new EU policy on fisheries partnership agreements with third countries, which has been operative since 2003, it will continue to encourage the conclusion of fisheries agreements in order to contribute towards the rational and sustainable exploitation of coastal states’ surplus marine resources to the mutual benefit of both parties.

Social dimension of globalisation, promotion of employment and decent work

The EU will contribute to strengthening the social dimension of globalisation with a view to ensuring maximum benefits for all, both men and women. The global objective will be to promote decent employment conditions and work for all.

Migration

The EU will promote the synergies between migration and development, to make migration a positive factor for development.

Research and innovation

The EU will promote the integration of development objectives, where appropriate, into its research and development policies and innovation policies, and will continue to assist developing countries in enhancing their domestic capacities in this area.

Information society

The EU will address the digital divide by exploiting the potential of information and communication technologies as a development tool and as a significant resource for attaining the MDGs.

Transport

The EU will address the special needs of both landlocked and coastal developing countries by promoting the intermodality issues for achieving network interconnectivity as well as security and safety issues.

Energy

The EU is determined to contribute towards meeting the special needs of developing countries by promoting access to sustainable energy sources and by supporting interconnection of energy infrastructures and networks.

Implementation and monitoring

The Commission will look into ways and means of further reinforcing its existing instruments, notably its impact assessment tool, in order to improve the coherence of development policies.

Furthermore, it will compile a mid-term EU Report on the matter between now and the next international MDG Review, where progress on the commitments proposed in this communication will be reviewed.

Background

This communication, together with the communications on financing for development and on the importance of Africa, was part of the EU contribution to the MDG Review at the UN High Level Event in September 2005.

Related Acts

Commission Working Paper of 20 September 2007 – EU Report on Policy Coherence for Development [COM(2007) 545 final – not published in the Official Journal].

Accelerating progress towards achieving the Millennium Development Goals

Accelerating progress towards achieving the Millennium Development Goals

Outline of the Community (European Union) legislation about Accelerating progress towards achieving the Millennium Development Goals

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > General development framework

Accelerating progress towards achieving the Millennium Development Goals (MDG)

Document or Iniciative

Communication from the Commission to the Council and the European Parliament – Accelerating progress towards attaining the Millennium Development Goals – Financing for Development and Aid Effectiveness [COM(2005) 133 final – not published in the Official Journal].

Summary

This communication outlines a way towards a new interim target for increased Official Development Assistance (ODA) volumes in the EU by 2010 and towards the UN target for ODA of 0.7% of Gross National Income (GNI) by 2015. The Commission suggests new detailed arrangements for aid, maps out options for innovative sources of finance and proposes ways to address the debt problems of low-income countries that remain after the Heavily Indebted Poor Countries (HIPC) initiative.

The commitment to increase financial resources for ODA

In terms of the ODA/GNI ratio, the Barcelona commitment sets a minimum rate of 0.33% for each Member State. In 2003 the EU average reached 0.34%. In volume terms, ODA rose in 2003 in 12 Member States compared to 2002. EU25 ODA flows increased from EUR 28.4 billion in 2002 to EUR 33 billion in 2003, representing an additional EUR 4.6 billion.

The Commission suggests setting two targets to be reached by 2010:

  • an individual threshold for Member States, differentiating between those which were already members of the EU in 2002 (EU15 Barcelona commitments) and those which joined later (EU10);
  • a collective average for all Member States (EU25).

The ODA of Member States which participated in the Barcelona Commitments (EU15) should be increased to the new individual baseline of 0.51% ODA/GNI, and Member States that joined after 2002 (EU10) should reach an individual baseline of 0.17% ODA/GNI by 2010.

The Commission calls on EU15 countries that have not yet done so to establish, by 2006, a firm timetable to achieve the UN target of 0.7% ODA/GNI.

Aid effectiveness: coordination and complementarity

Following the second High-Level Forum on Aid Effectiveness (HLF II) held in Paris in March 2005, the EU adopted a comprehensive agenda with time-bound objectives, based on the Council conclusions on harmonisation of November 2004. The EU also committed itself to additional targets (providing all capacity-building assistance through coordinated programmes with an increasing use of multi-donor arrangements; channelling 50% of government assistance through country systems; avoiding the establishment of new project implementation units; doubling the percentage of assistance provided through budget support or sector-wide arrangements; and reducing the number of uncoordinated missions by half).

A genuine European Development Strategy should be agreed to enhance aid effectiveness. Fragmentation, gaps and duplication among donors should be reduced to improve the division of labour and thereby enhance operational complementarity.

Member States have untied their aid to least developed countries (LDCs) in line with a recommendation from the Development Assistance Committee (DAC), and proposals for untying EC aid are currently in the legislative process. In the light of the positive impact of this approach, the EU is supporting the ongoing debates at international level on further untying aid beyond the DAC recommendations, with a specific emphasis on food aid, food aid transport and access by recipient countries to donors’ aid.

Trade-Related Technical Assistance (TRTA)

Despite being the largest contributor to Trade-Related Technical Assistance (TRTA) initiatives worldwide, the EU must improve the quality and effectiveness of this aid and respond to new needs. This notably includes intensified information exchange for TRTA planning and delivery and the exchange of best practices, reinforcing the dialogue with recipient countries to ensure that they integrate trade policies into their national poverty reduction and development strategies, ensuring more flexible TRTA programmes that can adapt to changing situations, and so forth.

Global Public Goods

A task force on Global Public Goods was set up in 2003. Member States reached a consensus on:

  • the definition of International Public Goods (IPG) and the relevance of the selected six priority IPGs for enhanced action: trade, knowledge, peace and security, financial stability, global commons and the eradication of communicable diseases;
  • readiness to examine the Action Plan with a view to establishing an EU common platform for the provision and financing of IPGs;
  • the principle that IPGs should only be financed from existing ODA if their provision is linked to the Millennium Development Goals (MDG), the three pillars of sustainable development and other agreed development objectives.

The EU should examine the forthcoming task force Action Plan on the basis of a Commission proposal for a common EU platform for the provision and financing of IPGs, agree which IPGs fall outside the scope of development and should therefore be financed from non-ODA financing sources in their national budgets, and enhance the provision of priority International Public Goods, starting with the establishment of an Action Plan at EU level.

Innovative sources of financing and new delivery mechanisms

Markedly greater aid is needed. Additional, more predictable and more stable sources of finance must be mobilised, something akin to “own resources” for development.

Member States have proposed various types of new finance mechanisms, including the possibility of “front-loading” pledged aid increases through an “International Finance Facility” (the IFF), proposals for international taxation, and voluntary options such as a global lottery or charitable donations.

Whatever options are finally implemented, increased ODA flows and new, more predictable and less volatile aid arrangements are required. This lack of flexibility and predictability prevents partner countries from embarking on the medium-term investments needed to accelerate progress towards the MDGs.

Reform of the international financial system

Despite the improved coordination between the EU Executive Directors of the IMF and the World Bank, several Member States wish to go further.

The Commission requests the Council:

  • to present as often as possible a single European position in the international financial institutions (IFIs), and to increase the visibility and influence of the European Union in the IFIs;
  • to develop a joint EU position on enhancing the voice of developing and transition countries in international economic decision-making.

Debt relief

Although the EU has made remarkable progress with the extended HIPC initiative, numerous concerns remain regarding the debts of poor countries. In the short term the overall funding of the HIPC initiative is not fully secured as long as non-Paris Club creditors do not deliver their part of debt relief. In the long term, the HIPC initiative will not suffice to ensure sustainable debt levels for poor countries.

Several problems still await solutions, such as the fact that a number of countries, mostly in post-conflict situations, may still remain excluded from the HIPC initiative, and that others, even after their graduation from HIPC, will remain in or return to debt distress situations.

The Commission invites the Council to deliver solutions to assist post-conflict countries which have not been able to benefit from the HIPC initiative to tackle the problem of having fragile institutions and most of the debt stock in arrears, and to explore the possibility of using a temporary debt service relief facility to alleviate the effects of exogenous shocks on debt-distressed countries.

Related Acts

Communication from the Commission to the Council and the European Parliament – Financing for Development and Aid Effectiveness – The challenges of scaling up EU aid 2006-2010 [COM(2006) 85 final – Official Journal C 2006/130 of 3 June 2006]
This communication, together with two others entitled ” EU Aid: Delivering more, better and faster ” and ‘Increasing the impact of EU aid: a common framework for drafting country strategy papers and joint multiannual programming’, is an aid-effectiveness package which follows up on the EU’s commitments in 2005 to increase development aid and improve impact and speed of delivery in order to meet the challenges of the Millennium Development Goals by 2015. It provides the first assessment of the implementation of the new EU commitments established by the Council in May 2005 to which the ” European Consensus ” and the ” EU strategy for Africa ” refer. Preliminary estimates indicate that the majority of Member States have introduced the necessary measures to achieve the 2010 ODA targets. However, the individual performance of some Member States is still insufficient: these countries must increase their aid volumes to avoid jeopardising the strong performance of the EU as a whole. The ability of the new Member States to meet their commitments is evaluated very positively; they have agreed to individual baselines adapted to their specific situations. They have committed themselves to striving towards reaching the ‘acquis’ of the EU in 2002 (0.33% ODA/GNI) by 2015 through gradual increases of their ODA, with an intermediate target of 0.17% by 2010. Despite the annual 4.5% increase in the share of the Community budget devoted to external actions and the additional funding from the 10th European Development Fund (EDF) in accordance with the European Council Conclusions on the Financial Perspective package for 2007-2013, the real share of the Community’s contribution to the EU’s collective ODA will fall from the present figure of 20% to 13% by 2013.