Proposal for a COUNCIL DECISION Amending Decision 2001/131/EC concluding the consultation procedure with Haiti under Article 96 of the ACP-EC Partnership Agreement

(presented by the Commission)

EXPLANATORY MEMORANDUM

Since the flawed elections of 2000, the EU and other leading donors in the Caribbean have decided to review, alter or stop providing aid to Haiti, since it was considered that respect for democratic principles and the rule of law were not upheld in that country. The partial or total suspension of aid was considered at that time to be the best instrument that the international community had to call the Haitian authorities to reason and force them to organise new free and fair elections.

As far as the EU is concerned, considering the situation as non-complying with the democratic principles of the Cotonou agreement, the Council of the European Union decided on 29 January 2001, in accordance with Article 96(2) (c) of the Cotonou Agreement, to adopt appropriate measures concerning the reorientation of our co-operation with Haiti. According to these "appropriate measures" EC aid to Haiti is partially suspended (no direct budget support to the Haitian Government), no notification of the 9th EDF funds (239 MEUR) and the remaining funds under the 8th EDF (84.4 MEUR) are redirected to the direct benefit of the Haitian people. Actions to strengthen civil society and the private sector, to support democratisation and strengthen the rule of law, to fight poverty, to give humanitarian and emergency assistance are being pursued. The EU has conditioned the normalisation of its relations with Haiti to the fulfilment of the conditions and measures foreseen in the OAS Resolution 822 in regard with the organisation of free and fair elections.

The 2001 Decision was reviewed and effectively reconducted by Decision 2002/131/EC on January 21 2002, Decision 2003/53/EC on 10 January 2003 and Decision 2003/916/EC on 22 December 2003. The current Decision expires on December 31, 2004, and requires a review of these measures within six months. Furthermore, recent political developments in Haiti require a review of the overall situation of our co-operation with that country.In February 2004, the situation in Haiti deteriorated dramatically with significant escalation in violence and bloodshed which led to the eventual resignation and departure from the country of President Aristide on 29 February 2004. Haiti's Supreme Court Chief Justice, Boniface Alexandre, has been sworn in on 29 February 2004 as the nation's interim President as mandated by Haiti's constitution. An Interim Government, led by Gerard Latortue and composed of technocrats, was sworn in on 17 March 2004. The interim Government has proposed to conduct free and fair elections within 18 months according to the CARICOM/OAS plan and in 3 phases: local elections during spring 2005, then legislative (parliamentary elections) during summer 2005 and finally Presidential elections in fall 2005. The Interim Government of Haiti has committed itself to give increased priority to the restoration of a climate of security and of confidence in the country. The carrying out of this commitment by concrete action is considered crucial to restore the democratisation in the country.

UN Resolutions dated 29 February 2004 and 30 April 2004, approved respectively the creation of a Multinational Interim Force followed by a Stabilisation Force, which would take over on June 1 under Brazilian leadership, to help stabilise the security situation and support the interim Government in the democratisation process.

International Donors and the Interim Government agreed to launch a joint needs assessment exercise (Interim Cooperation Framework: ICF) to define short and medium term priority needs of the country. The European Commission is taking a lead role in this exercise. The final results of the multi-donor assessment mission and the donor's commitments will be made available at a pledging conference in July 2004 presenting a carefully calculated and coordinated national reconstruction plan.

On the recommendation of the Council Latin America Working Group (COLAT), discussions between Commissioner Nielson and Interim Prime Minister Latortue have taken place on 12 May 2004 in Brussels. By letter [1] of 25 May 2004, Prime Minister Latortue confirmed the commitments of the Haitian Interim Government in view of the return of the country to constitutional democratic governance, including the conduct of free and fair elections within 18 months in 3 phases: local elections during spring 2005, then legislative (parliamentary elections) during summer 2005 and finally Presidential elections in fall 2005.

[1] Copy of letter is attached.

Taking into account the above mentioned elements, the European Union should give itself the means of an adequate and comprehensive response. e should support the Haitian people and the Haitian Government in the recovery process by supporting developmental activities in favour of the population and defined as priorities in the context of the ICF. We should also provide the means to support the democratisation process and notably by providing support for the organisation of elections. Finally the appropriate measures must also reflect the Commission's attachment to the essential elements of democracy, human rights and the rule of law, enshrined in the Cotonou agreement and send a powerful signal to the Government that while we welcome their commitment towards democratisation we will be watchful and insistent on their maintaining the declared calendar and delivering on these commitments. The return to full regular co-operation would thus accompany the return to full democratic rule in accordance with the Government's commitments to free and fair elections in 2005.

It is therefore proposed to review the appropriate measures as follows:

(1) the re-direction of the remaining funds under the eighth European Development (EDF) to programmes that are of direct benefit to the Haitian people, to strengthen civil society and the private sector, and to support democratisation, the strengthening of the rule of law and the electoral process, will be continued and can also include actions determined as short and medium term priorities in the Interim Co-operation Framework - ICF - established in close co-operation between the Interim Government, civil society and major donors;

(2) the allocation of resources under the 9th EDF will be notified upon publication of this Decision in the Official Journal of the European Union; (with the possibility of using the B-envelope in advance of the signature of the 9th EDF CSP/NIP, according to real needs.)

(3) discussions on the programming of the 9th EDF resources will start with the National Authorising Officer in view of the preparation of the Country Strategy Paper and the National Indicative Programme (NIP). The strategy will take account of the results of the Interim Co-operation Framework;

(4) the signature of the NIP will take place with the new democratically elected Government of Haiti following national elections respecting the OAS resolution 822 and accepted as free and fair by the competent Haitian institutions and by the International Community. It is noted that national elections are expected by mid 2005 at the latest;

(5) contribution to regional projects, operations of a humanitarian nature and trade co-operation are not affected.

These measures will expire on 31 December 2005, but could be reviewed and lifted after the planned elections have effectively been held.

Proposal for a COUNCIL DECISION Amending Decision 2001/131/EC concluding the consultation procedure with Haiti under Article 96 of the ACP-EC Partnership Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the ACP-EC Partnership Agreement [2], which entered into force on 1 April 2003, and in particular Article 96 thereof,

[2] OJ L 317, 15.12.2000, p.3. Agreement as amended by Decision No 1/2003 (OJL 141, 7.6.2003, p.25).

Having regard to the Internal Agreement between the representatives of the governments of the Member States, meeting with the Council, on measures to be taken and procedures to be followed for the implementation of the ACP-EC Partnership Agreement [3], and in particular Article 3 thereof,

[3] OJL 317, 15.12.2000, p. 376.

Having regard to the proposal from the Commission,

Whereas:

(1) On the basis of Decision 2001/131/EC [4], the provision of financial aid to Haiti is partially suspended as "appropriate measures" pursuant to Article 96(2)(c) of the ACP-EC Partnership Agreement.

[4] OJL 48, 17.2.2001, p. 31. Decision as last amended by Decision 2003/53/3C (OJL 20, 24.1.2003, p. 23)

(2) The Decision 2003/916/EC expires on 31 December 2004 and requires a review of the measures within six months.

(3) On 12 May 2004 discussions have taken place between the European Commission and the Interim Prime Minister of Haiti to take stock of the political agenda of the Interim Government in relation to the restoration of full democratic and constitutional rule, including the election timetable, with due respect for human rights and fundamental freedom.

(4) By letter of 25 May 2004, the Interim Prime Minister of Haiti confirmed the specific commitments of the Haitian Interim Government to comply with the essential elements of Article 9 of the Cotonou Agreement, particularly as regards the human rights situation, democratic principles and the rule of law in view of the return of the country to full constitutional and democratic rule.

HAS DECIDED AS FOLLOWS:

Article 1

Decision 2001/131/EC is hereby amended as follows:

(1) In the second and third paragraphs of Article 3, the date of 31 December 2004 shall be replaced by "31 December 2005"

(a) In the second paragraph "31 December 2004" shall be replaced by "31 December 2005";

(2) The Annex shall be replaced by the text appearing in the Annex to this Decision.

Article 2

This Decision shall be published in the Official Journal of the European Union.

Done at Brussels,

For the Council

The President

ANNEX

Letter to be addressed to the Government of Haiti

Dear Sir,

The European Union attaches great importance to the provisions of Article 9 of the Cotonou Agreement. The ACP-EC Partnership is founded on respect for human rights, democratic principles and the rule of law, these are essential elements of the above Agreement and thus form the basis for relations between us.

In this respect, the European Union has followed closely the recent transition in Haiti, especially as regards the designation of the new Interim Government of Haiti, which was sworn in on 17 March 2004 following an extensive consultation process based on the CARICOM/OAS plan.

On 12 May 2004, discussions took place in Brussels between you and the European Commission with a view to examining the political agenda of the Interim Government in relation to the restoration of democratic and constitutional rule. The European Union took note of your commitments particularly as regards the improvements of the human rights situation, the establishment of democratic principles including the holding of free and fair elections, the rule of law and good governance, as stated in your letter of 25 May 2004 to the European Commission. Those commitments should lead in due course to greater political stability in Haiti. The European Union strongly urges the Interim Government to translate these commitments rapidly into concrete actions to ensure that the democratisation process becomes an integral part of the Haitian political, economic and social life, thereby ensuring compliance with Article 9 of the Cotonou Agreement.

In the light of these elements, the Council of the European Union reviewed its decision of 22 December 2004 and decided to review the appropriate measures referred to in Article 96(2)(c) of the Agreement as follows:

(1) the re-direction of the remaining funds under the eighth European Development (EDF) to programmes that are of direct benefit to the Haitian people, to strengthen civil society and the private sector, and to support democratisation, the strengthening of the rule of law and the electoral process, will be continued and can also include actions determined as short and medium term priorities in the Interim Co-operation Framework - ICF - established in close co-operation between the Interim Government, civil society and major donors;

(2) the allocation of resources under the 9th EDF will be notified upon publication of this Decision in the Official Journal of the European Union;

(3) discussions on the programming of the 9th EDF resources will start with the National Authorising Officer in view of the preparation of the Country Strategy Paper and the National Indicative Programme (NIP). The strategy will take account of the results of the Interim Co-operation Framework.

(4) the signature of the NIP will take place with the new democratically elected Government of Haiti following national elections respecting the OAS resolution 822 and accepted as free and fair by the competent Haitian institutions and by the International Community. It is noted that national elections are expected by mid 2005 at the latest;

(5) contribution to regional projects, operations of a humanitarian nature and trade co-operation are not affected.

It is essential for the success of the co-operation to ensure a strengthened absorptive capacity for aid, which is currently lacking, through good governance and aid management capacity building measures. The modalities of implementation will be those adapted to the Country's capacity for adequate management of public finances. Furthermore, it is stressed that progress towards improving public management must go hand in hand with the implementation of co-operation policy.

The European Union will follow closely further developments in the democratisation process, in particular in relation to the achievement of the commitments of the Interim Government and the steps towards local, national and presidential elections. The Union reiterates its readiness to continue enhanced political dialogue with the Haitian Interim Government.

Please accept, Sir, the assurance of our highest consideration.

For the Commission

For the Council

The President

ANNEX II

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