B4-0370, 0375, 0376, 0377, 0378, 0379, 0380, 0381 and 0382/95

Resolution on the renewal of the EDF

The European Parliament,

- having regard to the outcome of the special negotiating meeting of the ACP-EU Council of Ministers of 30 November-1 December 1994,

- having regard to the outcome of the meeting of the General Affairs Council of 15 February 1995 and the meeting of the ACP-EU Council of Ministers of 16 February 1995,

- having regard to the letter sent by the President of Parliament to the President of the Council on the size of the 8th EDF,

- having regard to the statements by the Council and Commission of 28 February 1995,

- having regard to the fact that the results of the Mid-Term Review will be subject to the assent procedure,

- having regard to the final report and final resolution on the Mid-Term Review of Lomé IV adopted by the ACP-EU Joint Assembly at its meeting of 6 October 1994 in Libreville and its resolution on the progress of the negotiations adopted on 2 February 1995 in Dakar,

A. whereas the EU-ACP negotiations are at a standstill because of Council failure to agree on the total amount to be allocated to the eighth European Development Fund for the period 1995 to 2000 and recalling that the EDF alone constitutes 54% of European cooperation for development,

B. stressing that, in its scope and provisions, the Lomé Convention is a unique cooperation instrument without equivalent in the world,

C. aware that it has not been possible during the fourth Lomé Convention to reach agreement on the financial protocol, a fact which is also preventing the conclusion of any global agreement,

D. noting the decrease in real terms of aid to developing countries, which are bearing enormous costs for democratization processes at a time when the external expenditure of the Union, as provided for under the financial perspective for the period 1994-1999, is increasing substantially,

E. whereas the financial assistance given by the European Union to the countries of the South, particularly those which are signatories of the Lomé Convention, should remain a priority in line with the undertakings given,

F. whereas the lack of political will to assist the ACP partner countries shown by certain Member State governments is not only jeopardizing the common cooperation policy but is also undermining the Union's credibility on the international stage,

G. whereas the annual OECD report on development aid clearly shows that the industrialized countries are devoting less and less aid to the developing countries and that their contribution has fallen to 0.3% of GDP, the lowest level for twenty years, as against the established objective of 0.7% of GDP,

H. concerned that the Council has rejected the budgetization of Lomé Convention funding which might have provided democratic control by the European Parliament,

I. aware of the efforts of the French Presidency to arrive at an acceptable offer on the size of the 8th EDF,

J. whereas it would be contradictory to the stated objectives of the European Union's policy if the Union were to reduce its commitment to the development of ACP nations at a time when some of those are embarking on or making significant progress towards democratization and respect for human rights,

1. Deeply regrets the failure of the General Affairs Council to reach an appropriate global agreement on the eighth EDF, as well as the severe setback this has caused to the overall negotiations on the Mid-Term Review of Lomé IV; considers that reducing Lomé IV funding in real terms defies belief;

2. Demands therefore that the volume of the EDF be determined according to the following factors:

- enlargement of the European Union;

- population increase in the ACP countries;

- the rate of inflation;

- the inclusion of new elements proposed by the ACP countries and the European Union under the Mid-Term Review (eg. timber, bananas, etc);

- the economic difficulties faced by the ACP countries, resulting from structural adjustment policies and the Uruguay Round;

- the debt burden;

3. Stresses its great concern at the risk of development aid being renationalized in favour of bilateral relations and to the detriment of the Union's commitment to its ACP partners;

4. States categorically that it will not accept a decrease in real terms of the amount allocated under the previous Financial Protocol and will take any measures within its power to ensure that the EU's commitment to the ACP countries is upheld;

5. Issues a strong appeal to those Member States which have stated that they wish to reduce their financial contribution to economic development policy to reconsider their position;

6. Considers the allocation proposed by the French Presidency to be the strict minimum for the funding of the eighth EDF;

7. Calls upon the French Presidency to ensure that an acceptable offer is made to the ACP countries in sufficient time to allow the conclusion of the negotiations before 6 May 1995;

8. Makes its assent conditional on the fixing of funding at levels which meet the criteria set out in paragraph 2 of this resolution;

9. Calls for the EDF to be made an integral part of the budget of the Union;

10. Asks the negotiating parties to incorporate in the ongoing negotiations the document adopted by the ACP-EU Joint Assembly on 'Capacity building for an Effective Utilisation of Lomé through Regional and National Education and Training Centres' to ensure a better implementation of the Lomé Convention;

11. Instructs its President to forward this resolution to the Council, the Commission, the governments of all the states signatory to the Lomé Convention and the Co-Presidents of the ACP-EU Joint Assembly.