| Author (Person) | Cronin, David |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.9, No.33, 9.10.03, p14 |
| Publication Date | 09/10/2003 |
| Content Type | News |
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Date: 09/10/2003 By David Cronin A KEY foreign aid reform was advocated by the European Commission yesterday (8 October) when it sought to bring all funding for the African, Caribbean and Pacific (ACP) bloc within the EU budget. The 20-strong EU executive endorsed calls by Michaele Schreyer and Poul Nielson, the budget and development aid commissioners, for the 'budgetization' of the European Development Fund (EDF). Their call is designed to meet long-standing criticisms from MEPs who complain that the EDF, being separate from the €98 billion-per-year EU budget, is not subject to scrutiny by the European Parliament. They were also responding to the draft constitution produced by the future of Europe Convention, which urges that the EDF be incorporated into the budget. "The EDF is the only expenditure area managed by the Commission which lies outside the budget," said one EU official. "It lacks Parliamentary control and scrutiny, and you could say it lacks legitimacy." The official added that the proposal follows on from the overhaul of the Commission's external assistance activities which has been among the stated reform priorities of Romano Prodi's tenure. Among the main steps undertaken in that regard has been the creation of a single department, EuropeAid, to coordinate its overseas activities. "We are now looking more at the machinery of how this works," the official explained. "At the moment, some development assistance for Africa is channelled through the budget and some is channelled through the EDF. Both have competing requirements and this makes it more difficult for us in the Commission and more burdensome for the recipients. "Budgetizing the EDF would have substantial efficiency gains. If we gather all foreign aid together, we will also have a better overview of it and greater transparency for the taxpayer." The ninth EDF, which is currently in place, provides for €13.5 billion to be paid to the 77-member ACP grouping over a five-year period. Allocations to the 10th EDF are due to be fixed in 2005. Spain has voiced reservations to the idea of making it part of the whole budget in the past. However, insiders say that no EU government appeared opposed to the concept when it was discussed at Council of Ministers' level earlier this year. Unlike the EU budget, contributions to the EDF are not based on member states' national incomes. Instead, the amount each contributes is decided in talks every five years. If the Schreyer-Nielson plan becomes reality, then Spain and the UK would effectively have to increase the proportion they give to the EDF, whereas France could lower its contributions. At present, London and Madrid account for 12% and 5.8% of the EDF respectively, whereas they account for 17% and 7.4% of the Union's budget. Paris' contribution to the EDF comes to 24% of its total, whereas its contribution to the budget stands at around 19%. The European Commission adopted a communication on 8 October 2003 making a strong case for the incorporation of aid to African, Caribbean and Pacific Countries (ACP) as well as Overseas Countries and Territories (OCT) from the European Development Fund (EDF) into the EU budget. |
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