[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 22.6.2006

SEC(2006) 808

COMMISSION STAFF WORKING DOCUMENT

Annex to the COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Annual Report 2006 on the European Community’s Development Policy and the Implementation of External Assistance in 2005 {COM(2006) 326 final}

TABLE OF CONTENTS

1. STRATEGIC FRAMEWORK 4

1.1. Introduction 4

1.2. The European Consensus on Development 6

1.3. Focus on Africa 9

1.4. Policy Coherence for Development 10

1.5. MDG Review at the UN Summit 13

1.6. European Neighbourhood Policy 17

1.7. Aid effectiveness 18

1.8. Highlights on some 2005 key reforms 20

2. GEOGRAPHICAL FOCUS 22

2.1. Western Balkans 23

2.2. Eastern Europe and Central Asia 33

2.3. Mediterranean and Near and Middle East 43

2.4. ACP countries and OCTs 53

2.5. Asia 62

2.6. Latin America 70

3. THEMATIC PROGRAMMES AND MAINSTREAMING OF CROSS-CUTTING ISSUES 80

3.1. Democracy and Human Rights 82

3.2. Human and social development 87

3.3. Environment and sustainable development of natural resources, including energy 90

3.4. Non-state actors in development 95

3.5. Food security 97

3.6. Migration and asylum 98

3.7. Conflict prevention, crisis management and mine actions, including the Peace Facility 100

3.8. Drugs 104

3.9. Equality between men and women 106

4. FEATURE ARTICLE 107

4.1. Trade and development 107

4.2. Education as a priority sector in the European Commission’s external assistance 115

5. EC AID MANAGEMENT: EFFICIENCY AND EFFECTIVENESS OF EC CO-OPERATION 122

5.1. 2005 progress on qualitative issues in aid management 122

5.2. Developments in aid delivery modalities 123

5.3. Relations and partnerships with international organisations and other donors 127

5.4. Enlargement and special Task Force on Capacity Building 131

5.5. Simplification of EC procedures 132

5.6. RAL ( reste à liquider ) 133

6. MONITORING AND EVALUATION 134

6.1. Project results: Results-Oriented Monitoring 134

6.2. Evaluation: Review of the 2005 work programme 138

7. ANNEXES 142

7.1. EC assistance detailed in other reports 142

7.2. Introduction to financial tables 147

7.3. Financial tables 149

1. STRATEGIC FRAMEWORK

1.1. Introduction

2005 was an important year for development. The UN World Summit of September 2005 and the review of progress made in the implementation of the global development agenda – the Millennium Development Goals in particular – have highlighted the leading role played by the EU and have contributed to stimulating the debate within the EU on development policy.

The new Development Policy Statement – the European Consensus on Development – was signed on 20 December 2005 [1] . It provides “for the first time, a common vision that guides the action of the EU, both at its Member States and Community level, in development co-operation”. The Declaration defines common values, principles, objectives and means in favour of poverty eradication and with a view to achieving the Millennium Development Goals.

The Declaration highlights the need for better co-ordination and harmonisation between all donors in order to support developing countries’ own efforts. While “the primary and overarching objective of EU development co-operation is the eradication of poverty”, the Declaration also takes into account the importance of realising the synergies between different policies and objectives of EU external action. It sets development objectives within the context of sustainable development; Human Rights and good governance are defined not only as areas for action and cross-cutting issues to be systematically mainstreamed, but also as objectives in their own right.

While the European Consensus provides the general policy framework, orientations and focus to guide the implementation of Community co-operation with partner countries and regions, the legal framework for Community Development Policy is laid down in the Treaty establishing the European Community. In particular, Article 177 sets three objectives for the EC development policy: the sustainable economic and social development of the developing countries, and more particularly the most disadvantaged among them; the smooth and gradual integration of the developing countries into the world economy; and the fight against poverty in the developing countries.

In preparation for the World Summit of September 2005, on the basis of Commission proposals, the EU as a whole and the 25 Member States individually committed themselves to taking ambitious measures to accelerate progress towards the Millennium Development Goals. Their commitments focused on three issues: (1) more and better aid; (2) strengthened policy coherence for development; and (3) extra efforts in support of Africa.

The EU Strategy for Africa, adopted in December 2005, is the first concrete application of the European Consensus on Development. It sets out a framework for action for EU Member States and the European Commission to support Africa's efforts to attain the Millennium Development Goals, and foresees enhanced support in particular for peace and security, governance, infrastructure and trade.

The EU is the world’s leading donor. Collectively the EU provides 52.32% of worldwide official development assistance, amounting to €44.8. billion (US$55.7) in 2005. The collective EU aid effort, expressed as a proportion of the combined EU national income, reached 0.44% in 2005. The EU committed itself to further increasing its aid volumes to 0.56% of its national income by 2010, with a view to reaching 0.7% by 2015, thus making this long-standing UN target a reality. Through this effort, the EU will provide 78% of the expected additional Official Development Assistance (ODA) by 2010. Significant progress was also made on the aid effectiveness agenda.

The EU acknowledged that finance alone is not enough to reach the Millennium Development Goals, and that non-aid EU policies have a very important contribution to make in this respect. The EU has decided to associate other policies with the MDG agenda. It has identified 12 policy areas that have great potential to contribute to the MDG objectives. A so-called ‘Policy Coherence for Development commitment’ was made in respect of each of them (agricultural policy, trade policy, research and development policy, etc) in order to improve coherence with the specific objectives pursued by EU development policy.

Through its co-operation programmes with over 160 countries, the EC is particularly attentive to responding to the diverse challenges facing different regions and adjusting to the different priorities of each partner. Assistance is adapted to the specific relations linking the EU more closely to certain countries and to the co-operation priorities defined in that framework. For the EU’s neighbouring countries, the European Neighbourhood Policy (ENP) aims at developing a zone of shared prosperity and stability, in order to bring these countries closer to the EU while offering them a stake in its internal market. Development policy constitutes a component of the ENP within its broader policy framework. In addition, EU co-operation with Russia is pursued in the framework of the strategic partnership established between the two.

A number of close partners, namely Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Serbia and Montenegro and Kosovo (under UN Security Council Resolution 1244) have now moved further on the path to accession to the EU and continue to benefit from the CARDS Programme until the introduction of the unified instrument for pre-accession in 2007. The prospect for future membership of the EU was endorsed by the Feira European Council in June 2000 and confirmed by the European Council in Thessaloniki in June 2003. The European Council of December 2004 reaffirmed that the future of the countries of the Balkans is within the European Union. The Thessaloniki Agenda has strengthened and enriched the Stabilisation and Association Process with elements from the enlargement process, so that it can better meet the new challenges as the countries of the region move from stabilisation and reconstruction to accession preparation.

CARDS assistance, which underpins the political process, is directed at adjusting to the EU political objectives for the region and particularly at contributing to the Stabilisation and Association Process. Croatia was granted candidate country status following the decision of the European Council of 17 and 18 June 2004. Croatia as a candidate country benefits from all three pre-accession financial instruments: Phare for institution-building and economic and social cohesion, ISPA for environment and transport infrastructures, and SAPARD for agricultural and rural development. Croatia also remains eligible for the CARDS Regional Programme in 2005 and 2006.

1.2. The European Consensus on Development

The key political priority for 2005 was the adoption of a new development policy statement. The European Consensus on Development, jointly agreed by the Commission, the Council and the Parliament in December 2005, provides a policy platform setting out common objectives and principles for development co-operation. It reaffirms the EU commitment to poverty eradication, ownership, partnership, delivering more and better aid, and promoting policy coherence for development. It will guide the European Union’s development co-operation with all developing countries for the coming years.

The starting point for this consensus was the wide public consultation process that took place between January and April 2005, on the basis of an Issues Paper on the future of EU development policy and an online questionnaire. A tour of European capitals took the debate to national governments, parliaments and civil society of the Member States. The process – involving a multiplicity of stakeholders, as well as the Commission Delegations in a number of developing countries – produced a total of 530 contributions, which were then analysed in a Consultation Report [2] . An evaluation study [3] of the 2000 EC Development Policy Statement was also undertaken and integrated into the Commission’s new proposals.

The Commission then prepared its proposal for a joint declaration by the Council, the Parliament and the Commission, and the resultant Communication was adopted in July [4] . At that point, the formal debate started between the Commission, the Council and the European Parliament. The European Economic and Social Committee drafted an opinion on the Commission proposal, supporting the concept of an EU policy statement, highlighting the importance of greater harmonisation between the EU actors, and stressing the need for a more inclusive globalisation. The Committee of the Regions also provided input on the related subject of decentralised co-operation. The debate was rich, lively, and at times controversial.

The Parliament adopted a first Resolution on the Commission proposal, the content of which had been integrated to a large extent in the final draft of the Statement. Thus, the need for a balanced approach tackling all aspects – social, economic and environmental – of sustainable development, the emphasis on gender and on children’s rights and the promotion of key principles of aid effectiveness were clarified and strengthened thanks to the Parliament.

The Council and the Commission adopted the Consensus at the General Affairs and External Relations Affairs Council in November. Then the Parliament proceeded swiftly to adopting a second Resolution which welcomed “the fact that for the first time the EU and its Member States have agreed to act together to promote a common EU vision of development, setting out common objectives and principles and reaffirming the EU's commitment to poverty eradication, ownership, partnership, delivering more and better aid and promoting policy coherence for development, which will guide Community and Member States' development co-operation activities in all developing countries.” Thus the Parliament has given its assent to the European Consensus on Development, making it a fully fledged tripartite Declaration between the three major institutions of the European Union.

The approval of the European Consensus marks the beginning of a new paradigm for development co-operation. For the first time in fifty years of development co-operation, the Declaration defines at the Union level the common values, principles, objectives and methods in favour of poverty eradication. It commits the Community and the Member States, not only as members of the Council, but also as bilateral donors.

The European Consensus on Development The European Consensus on Development reflects the European Union’s willingness to make a decisive contribution to poverty eradication and to help build a more peaceful and equitable world. The Declaration is divided into two parts: the EU common vision of development is the subject of Part I, while Part II sets out the policy guiding the implementation of this vision at the Community level. Part I - The European Union Vision of Development This part will guide Community and Member State development co-operation activities in all developing countries. Common Objectives The primary objective is the eradication of poverty, considered in its multidimensional aspects and in the context of sustainable development, in line with the Millennium Development Goals (MDGs). Human rights and good governance are other important objectives. Common principles Ownership, partnership, in-depth political dialogue, participation of civil society, gender equality, engagement towards preventing state fragility. Delivering more and better aid Commitments to: reach 0.7% target of gross national income by 2015 (0.56 % by 2010 is the intermediate target make public development assistance more stable and predictable implement and monitor commitments on aid effectiveness progressively increase the budget support aid modality, as a means of strengthening ownership use also debt relief and improve untying of aid improve co-ordination and complementarity between the Community and Member States. Advancing Policy Coherence for Development Take account of development co-operation objectives in all policies which can affect developing countries and ensure that these policies support development objectives. Part II - European Community Development Policy This part sets out how the common vision will be implemented in the delivery of assistance from the resources entrusted to the Community. The Community role The Commission will use a differentiated approach based on its comparative advantages as well as on the needs expressed by the regions and countries. In each country it will target its assistance in a limited number of priority areas of action. Resource allocation will be guided by objective and transparent criteria related to needs and performance. Nine areas for action The Community will be primarily active in the following nine areas: trade and regional integration the environment and the sustainable management of natural resources infrastructure, communications and transport water and energy rural development, territorial planning, agriculture and food security governance, democracy, Human Rights and support for economic and institutional reforms conflict prevention and fragile states human development social cohesion and employment. Four cross-cutting issues In all its activities the Community will apply a strengthened approach to mainstreaming these cross- cutting issues: democracy, good governance, Human Rights, the rights of children and indigenous peoples gender equality environmental sustainability the fight against HIV/AIDS. The wider picture Aid modalities will be tailored to countries’ needs and contexts, with budget support as the preferred modality. When appropriate, the Community will continue to support global funds and initiatives clearly linked to the Millennium Development Goals and Global Public Goods. |

- 1.3. Focus on Africa

In 2005 Africa featured high on the EC agenda. On 12 April, the Commission proposed, as part of the so-called MDG package of Communications [5], a “Focus on Africa”. In this proposal, the Commission concentrated mainly on three multipliers for development: governance, infrastructure and social cohesion. The Council (April 2005) welcomed the “Focus on Africa” initiative and called on the Commission to elaborate further these proposals and to develop a long-term Strategy for Africa.

The new EU Strategy for Africa was adopted on 12 October 2005 by the European Commission. Its adoption was preceded by consultations with the African regional organisations and the African Union. Following this proposal, the European Council adopted on 19 December a full-scale EU Strategy for Africa.

This Strategy provides a common, comprehensive and coherent framework for action for all EU Member States and the European Commission to support Africa’s efforts to reach the UN Millennium Development Goals (MDGs). In the context of this Strategy, the Commission will strengthen its political, economic and developmental support in areas considered prerequisites for attaining the MDGs (peace and security, good governance), areas that create the economic environment for achieving the MDGs (economic growth, trade, interconnection) and areas directly targeting the MDGs (social cohesion, environment). The four key Commission initiatives under this Strategy are a new Governance Initiative, a Euro-Africa Business Forum, a Partnership for Infrastructure, and the Nyerere programme for student exchange.

As decided at the EU-Africa Ministerial meeting in Bamako on 5 December 2005, commitments made in the context of this Strategy will be closely monitored, with the Commission working together with Member States and the Council Secretariat.

The year 2005 witnessed strengthening of the link between the European Commission and the African Union. The dialogue especially took on a high profile on 12 October 2005 when the EC College hosted a joint seminar with the AU Commission in Brussels. In addition to the Commission-to-Commission meeting, a large number of bilateral meetings were held between different European Commissioners and their respective AU Commission (AUC) counterparts. Members of the European Commission have attended all AU Summits to date. A framework for future co-operation between the two Commissions is set out in a Joint Work Plan which, together with a Joint Declaration, was adopted at the Commission-to-Commission meeting on 12 October.

At the technical level, a Joint EC-AUC Task Force has been established and its two first meetings were held in Addis in February 2005 and in Brussels in July 2005; a third meeting is foreseen in early 2006. Its objective is to foster close institutional ties through the exchange of experience in different fields such as institutional development, governance, environment and trade. In parallel, the Commission has fully contributed to the progress of the EU-Africa dialogue, and actively participated in the work of international fora where Africa was high on the agenda, in particular the G8 and the UN.

According to the 2005 FAO (Food and Agriculture Organization) report on world food security, one-third of the Sub-Saharan Africa population is currently undernourished. The Commission is heavily engaged in tackling acute and chronic hunger in Africa in the framework of poverty reduction programmes. During major food crises which occurred in Niger, Malawi and Sudan in 2005, and are likely to continue in 2006, the EC has mobilised aid in close co-ordination with other donors and UN organisations.

To reduce poverty, of which food insecurity is the basic dimension, the new EU Strategy for Africa aims at promoting pro-poor growth. To that effect, the Commission is in the process of elaborating a pan-African programme to tackle rural poverty by advancing agricultural development. African leaders and the AU are increasingly aware that food security and agriculture are linked and need to be prioritised, reversing the negative trends in investments of the last decade. Developing agriculture would raise rural income and improve access to food at household level, while increasing its availability at national level.

1.4. Policy Coherence for Development

It is widely understood that development policy alone will not bring progress to developing countries. An effective improvement in the coherence of developed countries’ policies would put developing countries in a much better position to achieve the Millennium Development Goals. The impact of EU non-aid policies on developing countries should not be underestimated, nor should their potential to make a positive contribution to the development process in these countries.

The EU commitment towards policy coherence is not only a key political commitment in the context of the MDGs. It also has a firm legal basis in the EC Treaty (Art. 178), which states that the Community “shall take account” of development objectives in all its non-aid policies “which are likely to affect developing countries”. In preparation for the World Summit of September 2005, based on the Commission Communication on Policy Coherence for Development of April 2005[6], the Council adopted in May 2005 conclusions on how non-aid policies can assist developing countries achieving the MDGs.

The Commission Communication identified 12 different policy areas where the challenge of attaining synergies with development policy objectives was considered particularly relevant for assisting developing countries achieving the MDGs. The Council took the commitments to the implementation of the objectives contained in the Commission Communication and agreed on a list of ‘policy coherence for development commitments’. In addition, the ‘European Consensus on Development’, jointly agreed by the Commission, the Council and the European Parliament in December 2005, reaffirms the EU’s commitment to taking action to advance policy coherence for development in these 12 areas.

The 12 Policy Coherence for Development commitments [7]

Trade : The EU is strongly committed to ensuring a development-friendly and sustainable outcome of the Doha Development Agenda and EU-ACP Economic Partnership Agreements (EPAs). The EU will further improve its Generalised System of Preferences, with a view to effectively enhancing developing countries’ exports to the EU. The EU 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 lead global efforts to curb unsustainable consumption and production patterns. The EU will assist developing countries in implementing the Multilateral Environmental Agreements (MEAs), and will work to ensure that the capacities of developing countries are taken into account during MEA negotiations. The EU will continue to promote pro-poor environment-related initiatives and policies.

Climate Change : The EU recognises that one of the greatest environmental and development challenges in the twenty-first century is that of mitigating and adapting to climate change, and that lasting progress in achieving the MDGs will be enhanced by the success of the international community in implementing the Kyoto Protocol and reinvigorating the international negotiations to ensure a post-2012 arrangement in the context of the UN climate change process. In this context the EU reconfirms its commitment to the Kyoto Protocol and its determination to develop a medium- and long-term EU strategy to combat climate change, consistent with meeting the 2 degree objective as outlined in the European Council’s conclusions of the 23 March 2005.

Security : The EU will treat security and development as complementary agendas, with the common aim of creating a secure environment and of breaking the vicious circle of poverty, war, environmental degradation and failing economic, social and political structures. The EU will enhance its policies in support of good and effective governance and the prevention of state fragility and conflict, including by strengthening its response to difficult partnerships/failing states. The EU will strengthen the control of its arms exports, with the aim of avoiding EU-manufactured weaponry being used against civilian populations or aggravating existing tensions or conflicts in developing countries.

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

Fisheries : The EU will continue to pay particular attention to the development objectives of the countries with which the Community enters into bilateral fisheries agreements. Within the context of the new EU policy on fisheries partnership agreements with third countries, which has been implemented since 2003, the EU will continue to encourage the conclusion of fisheries agreements in order to contribute towards rational and sustainable exploitation of the surplus of coastal states’ marine resources, to the mutual benefit of both parties.

Social dimension of globalisation, employment and decent work : The EU will contribute to strengthen the social dimension of globalisation with a view to ensuring maximum benefits for all, men and women. The EU will promote employment and decent work for all as a global goal.

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 RTD and innovation policies, and will continue to assist developing countries in enhancing their domestic capacities in this area. The EU supports global, regional and national efforts in research for development, to address the special needs of the poor in the areas of health, including prevention and treatment of HIV/AIDS, agriculture, natural resource and environmental management, energy, in particular renewable energy and energy efficiency, and climate.

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 land-locked and coastal developing countries by promoting the intermodality issues for achieving network interconnectivity as well as security and safety issues.

Energy : The EU is strongly committed to contributing to the special needs of developing countries by promoting access to sustainable energy sources and by supporting the interconnection of energy infrastructures and networks.

As regards implementation and with a view to supporting strengthened policy coherence for development, the Council conclusions of May 2005 and the European Consensus on Development called for improved procedures, mechanisms and instruments at the level of the Council, Commission and Member States, and for the allocation of adequate resources and the sharing of best practices. Furthermore the Commission and Member States are committed to prepare a rolling work programme that will propose priorities for action, define roles and responsibilities of Council, Member States and Commission and set out sequencing and timetables.

To further enhance EU policy coherence in the specific context of supporting the MDGs, the Commission will prepare biennial progress reports to monitor progress on the EU coherence commitments. The first of these EU PCD reports is due in 2007.

1.5. MDG Review at the UN Summit

The EU has on several occasions underlined the importance of the MDG Review at the World Summit of September 2005 as a decisive opportunity to accelerate progress towards achieving the Millennium Development Goals.

In preparation for the UN Summit, the European Commission services compiled a consolidated EU report on how the Union has contributed towards past progress on the Millennium Development Goals. The report was based on the national and Community MDG reports[8] prepared in 2004 and 2005 by the EU Member States and the Commission.

Building on these MDG reports, in April 2005 the Commission adopted three Communications which provide concrete proposals on how to accelerate progress towards achieving the MDGs. Together, these Communications offer a substantial reply to the challenges ahead. On this basis, in May 2005 the European Union adopted conclusions aimed at accelerating progress towards the Millennium Development Goals – by more and better aid, by strengthened policy coherence for development, and by extra efforts in support of Africa. These conclusions, which formed the basis for the European contribution to the UN Summit in September 2005, consisted of three main elements:

(1) a significant increase in the quantity and quality of Official Development Assistance (ODA)

In 2005 the 25 Member States’ ODA totalled €43 billion (OECD figures). Yet EU Member States agreed to continue increasing their ODA budgets beyond the commitments they made at Monterrey (0.39% of GNP in 2006), committing to a new interim minimum target for each Member State of 0.51% for 2010 (0.17% for the new Member States). This would take the Union's collective effort to 0.56% with the ultimate goal for 2015 being 0.7%. In absolute terms this commitment would mean an additional €20 billion in ODA by 2010, and ensure staying on track for the achievement of the 0.7% target fixed by the UN in 2015.

(2) strengthening Policy Coherence for Development and associating non-aid policies to the MDG agenda

Development co-operation alone will not be enough to achieve the Millennium Development Goals. Other EU policies have an essential role to play in helping developing countries attain the MDGs. The Union has agreed to associate 12 policy areas with the MDG objectives and timeframe. The EU is fully committed to taking action to advance Policy Coherence for Development in these 12 areas. On each one, the EU accepts specific ‘Policy Coherence for Development commitments’, to make these policies coherent with development policy objectives.

(3) the priority given to Africa.

The Commission wishes to focus its efforts on Africa and help its countries become the main players in their own development. The EU should focus on areas where it can also catalyse action by other donors:

- governance, in particular through support for the African Union and partnership with its institutions and the refinancing of the Peace Facility;

- the networks necessary for regional integration between African countries and fostering South-South trade;

- social cohesion and sustainable development.

The Monterrey Process - Financing for Development and Aid Effectiveness In the context of the UN World Summit, the European Union accepted historic new commitments on Financing for Development and Aid Effectiveness, building on the earlier ‘Barcelona commitments’ taken at the Monterrey International Conference on Financing for Development in 2002. The decisions of May 2005 were essential to prompt commitments by others. The EU’s endeavours were welcomed by our developing country partners, particularly because the results of the Summit itself remained below expectations, notably as regards the Financing for Development segment. Subsequently, the UN General Assembly agreed on a follow-up conference to take place between 2008 and 2009 to review further progress on the Monterrey consensus. The new ODA commitments will further reinforce the EU’s position as the world’s biggest aid donor. They include New targets for Official Development Assistance (ODA): the EU increased the initial ODA targets set by those Member States that participated in the ‘Barcelona commitments’ (= EU15): those targets consisted of a 0.33% ODA/GNI individual baseline to ensure an EU collective average result of 0.39% by 2006). In order to achieve the 0.7% UN goal by 2015, all 25 Member States subscribed to new intermediate commitments for 2010. The EU15 that are below a level of 0.51% ODA/GNI undertake to achieve that level; while those that are above promised to sustain their efforts. The Member States that joined the EU after 2002 (=EU10) and have not yet attained a level of 0.17% ODA/GNI will strive to increase their aid to that level by 2010 and to 0.33% by 2015. The acceding countries of Romania and Bulgaria aligned themselves to these commitments. These individual commitments would correspond to a collective EU result of 0.56% ODA/GNI by 2010. These commitments are combined with the promise to raise aid to Sub-Saharan Africa and to provide at least 50% increased aid volume to the African continent. Further new commitments concern: innovative sources of financing for development; further debt relief; more predictable aid mechanisms, mitigation of exogenous shocks and aid untying; better co-ordinated and more effective aid at EU level – notably by implementing the Paris Declaration on Aid Effectiveness and the additional EU commitments; International Public Goods; reform of the international financial institutions with a view to strengthening the voice of developing countries, starting from an improvement of existing EU co-ordination; and finally more and better co-ordinated aid for trade (trade-related assistance). The Commission informed the Council with reflections on the most promising options for innovative sources of financing for development and provided detailed technical analyses[9]. As a result of this process, two proposals received the support of some Member States: the International Finance Facility for immunisation; and a contribution on airline tickets to be introduced on a country-by-country voluntary basis to help finance development projects. These either aim to ‘frontload’ the implementation of already committed resources transferred to partner countries or to mobilise resources to finance existing ODA commitments. Concerning further debt relief, the most important development in 2005 was the Multilateral Debt Relief Initiative launched by the G8 in view of the UN World Summit. The Commission remains committed to the Highly Indebted Poor Countries (HIPC) initiative, to which it has pledged more than €1.6 billion. In 2005 debt relief effectively granted on EDF loans to HIPC countries amounted to €88.64 million, bringing the cumulative amount of Commission participation since inception in 2000 to €344.5 million, including the supplementary Least Developed Country initiative decided on by the ACP-EU Council in December 2000. The Commission acts also as a donor to the HIPC Trust Fund to help finance the participation of other regional multilateral organisations in the initiative and has, since inception, transferred to it €841.5 million (USD 820 million), out of which USD 697 million have been effectively used by the Trust Fund for debt relief so far. The Commission reports annually to the EDF Committee and to the ACP group of the Council on the details of the implementation of the HIPC initiative[10]. The trade-related assistance commitment was further specified by the Council in December 2005 prior to the WTO Ministerial Conference in Hong Kong: The EU jointly committed to provide, by 2010, €2 billion for ‘aid for trade’. The EC alone will contribute €1 billion and all Member States together the other €1 billion. The EU also agreed to ensure adequate and predictable funding of an enhanced Integrated Framework[11], provided the current weaknesses are addressed. |

1.6. European Neighbourhood Policy

Objectives of the European Neighbourhood Policy

The European Neighbourhood Policy (ENP), approved by the Council in 2004, is a key EU external relations priority.

Through the ENP, the EU is seeking to promote governance and development in its immediate vicinity. The ENP responds to the EU’s interests in helping ensure increasing prosperity, stability and security on its border, and to the wishes of the neighbours of the enlarged EU for closer relations. The ENP also supports efforts to achieve the objectives of the European Security Strategy adopted by the European Council of December 2003.

The ENP offers partner countries a new kind of relationship with the EU, going beyond co-operation to include closer political links and an element of economic integration. In addition to these incentives it offers a stake in the internal market and support to meet EU standards, as well as assistance with reforms that will stimulate environmentally sustainable economic and social development. In turn, ENP partners make precise commitments, which can be monitored, to strengthen the rule of law, democracy and respect for Human Rights, to promote economic reforms, to stimulate employment and social cohesion, and to co-operate on key foreign policy objectives such as counter-terrorism and non-proliferation of weapons of mass destruction. The ENP also helps address concerns within the EU about illegal migration, border management and organised crime.

The ENP works on the basis of Action Plans. An Action Plan is an agreement between the EU and the neighbour country identifying priorities for action across a broad range of areas. The Action Plan agreed with each partner is keyed to its particular needs and capacities, in line with the principles of joint ownership. The partnership is designed in such a way as to reward progress with greater incentives and benefits, which are entirely distinct from any prospect of accession. How far and how fast each partner progresses in its relationship with the EU depends on its capacity and will to implement the agreed priorities.

Main achievements to date:

In 2005, significant progress has been made:

- Implementation of the seven ENP Action Plans approved in December 2004 (Israel, Jordan, Moldova, Morocco, the Palestinian Authority, Tunisia and Ukraine) has started and is kept under review through the institutions of the Partnership and Co-operation and Association Agreements.

- Preparation of five new Action Plans has begun (Armenia, Azerbaijan, Egypt, Georgia and Lebanon) and should be completed in 2006.

Partners with approved Action Plans have begun implementing the agreed priorities, in line with clear timetables. Furthermore, the Government of Moldova has made the ENP Action Plan the centrepiece of its reform strategy, and some Mediterranean countries see ENP as a means of accelerating their own reform programmes (e.g. Jordan’s linkage with its own National Agenda) and achieving the enhanced status in relations with the EU they have long sought.

During 2005, sub-committees have been established, most of them new, under the existing Association or Partnership and Co-operation Agreements. These cover political dialogue, justice and home affairs including migration, the economy, social affairs and education, research, transport, energy and environment. In this framework, a first round of technical discussions on the implementation of the Action Plans has taken place with seven countries. Through this scheme, progress has been made on a number of important issues, e.g. Market Economy Status, visa facilitation and energy dialogue with Ukraine, setting up a border-monitoring mission on the Moldova-Ukraine border, strengthening and expansion of the scope of the EU’s political dialogue with a number of Mediterranean countries (including, for the first time, the creation of sub-committees in which to discuss on a regular basis issues such as democracy, Human Rights and governance). Immediate examples on the assistance side include institutional twinning [12] and the use of the TAIEX instrument [13] to provide targeted policy and legal advice in the context of legislative approximation with the acquis communautaire for Southern Mediterranean partners.

As part of the reform of the external financing instruments, the Commission proposal (October 2004) for a new European Neighbourhood and Partnership Instrument (ENPI) has been positively received overall by the Council and the European Parliament. It has the capacity to support a wider range of activities than is possible under existing financial instruments (MEDA and TACIS), integrates a wide range of core policy objectives, including for example development policy, and takes a new approach to cross-border co-operation. Even before the adoption of this Regulation, EC assistance under these instruments is being targeted towards the reform priorities agreed in the ENP Action Plans, as well as strengthening cross-border co-operation through Neighbourhood Programmes.

EU Member States are taking the ENP Action Plans into account in their own bilateral assistance programming while the international financial institutions (IFIs) are also beginning to take the ENP Action Plans as the basis of their own agenda for their operations with these partner countries.

1.7. Aid effectiveness

1.7.1. Co-ordination and harmonisation

2005 has been an active year for the strong EU commitment to enhance the quality and effectiveness of its aid. Indeed, the international process on co-ordination received a strong impetus through the second High Level Forum on Aid Effectiveness (HLF II) of Paris in March 2005, which provided a comprehensive agenda for immediate implementation. The EU was instrumental in helping international donors and aid recipients agree on monitorable commitments related to ownership, harmonisation, alignment, results and mutual accountability. The Paris Declaration, its objectives and indicators represent the visualisation of these commitments which are to be implemented before 2010.

In this Declaration the European Union – Member States, including 10 new Member States as emerging donors, and the Commission – signed up to additional ambitious objectives, both as individual donors and as a collective group. Indeed, the EU committed itself in Paris to additional concrete targets, in particular :

- to provide all capacity building assistance through co-ordinated programmes with an increasing use of multi-donors arrangements;

- to channel 50% of government-to-government assistance through country systems, including by increasing the percentage of assistance provided through budget support or Swap arrangements;

- to avoid the establishment of any new Project Implementation Unit (PIU);

- To reduce the number of uncoordinated missions by 50%.

In addition, and in the run up to the HLF II, the EU adopted a comprehensive set of commitments as a collective contribution to the reduction of transaction costs. These are based on the Council Conclusions of November 2004 and entail progress on elements such as supporting local process, joint programming, joint arrangements and further division of labour.

Moreover, determined to move the international agenda forward and to assume its share of the effort, the EU gave increased aid effectiveness a central role in its own development strategy. Improving aid effectiveness has been introduced as an essential part of the New EU Development Policy Statement and the EU Strategy on Africa, both of which focus on developing concrete results in the field in this regard.

1.7.2. Complementarity

The new policy statement - the European Consensus on Development - places the effectiveness of EU aid, including complementarity, at the centre of its shared vision. The EU Strategy for Africa, endorsed by the European Council at the same time, also calls for rapid and steady implementation of the aid effectiveness agenda in Africa.

This set of commitments forms a package of comprehensive deliverables regrouped in an Action Plan which is now being submitted to the Council and the European Parliament. These commitments fall on three interconnected axes:

- a transparent and knowledge-based mapping and monitoring of activities. This includes deliverables such as the Donor Atlas, the preparation of a second edition for 2006, and the drafting of several compendia of EU development rules;

- the execution of the aid effectiveness pillar of the new EU strategy framework, as defined in the new development policy statement, the European Consensus and the EU Strategy for Africa;

- the implementation of the collective commitments adopted by the Paris Declaration on harmonisation and alignment. This includes inter alia the preparation of a proposal for a joint Programming Framework. Background studies for this have analysed and compared the programming systems of the Member States and existing experience in the field, and the results have been the subject of a lengthy consultation process with the Member States. This also includes the establishment, by common accord of all EU donors present in the field, of country-based ‘EU harmonisation roadmaps’ to define concrete steps strengthening the local harmonisation process in relationship to national agendas.

Finally, in December 2005, the EU adopted two Regulations[14] laying down rules on access to Community External Assistance, amending all existing aid instruments and initiating an unprecedented untying of EC aid. This approach, which goes far beyond a trade negotiation between donors, has been endorsed by the Council and the European Parliament. It puts the partner country at the centre of the action and advocates an intelligent application of the concept of untying that also supports regional integration, capacity building and the development of local markets. It helps the partner country to become a major actor in its own development, not only in political terms but also operationally. In the new regulations, all aid to the Least Developed Countries will be unilaterally untied.

The procurement of expertise will also be untied, meaning that contracts will be awarded only on the dual criteria of quality and price. 30% of all EC aid will be completely untied. According to internationally agreed estimates, this will create better value-for-money, worth up to €500 million, going much further than the existing limited international consensus that covers only 2% of aid.

The remaining part of EC aid will be almost completely untied, the only condition being reciprocity for donors. This represents a generous offer for those donor countries that do not yet untie their aid.

1.8. Highlights on some 2005 key reforms

1.8.1. Revision of the Cotonou Agreement

The year saw a number of opportunities to accelerate progress towards world poverty reduction. The first major political event of 2005 reached a successful conclusion on February 23 when, following 10 months of discussions, 25 EU Member States and 78 countries from Africa, the Caribbean and the Pacific completed negotiations on revision of the Cotonou Agreement.

The objectives were to enhance the effectiveness and quality of the EU-ACP partnership, ensure consistency with the new international agenda for development, deepen the political dimension of the partnership, and broaden the co-operation framework to include new security issues. The revision process did not call into question the fundamental acquis of the Cotonou Agreement.

The outcome is a balanced package which can be summarised as follows:

- The political dimension and co-operation in the area of security have been strengthened. The establishment of a more systematic political dialogue under Article 8, in relation to respect for Human Rights, democratic principles and the rule of law, will encourage effective dialogue and better results. A number of important security provisions have been added to the Agreement, including references to the fight against terrorism, the International Criminal Court (ICC), and co-operation in countering the proliferation of Weapons of Mass Destruction (WMD). This last commitment is an essential element based on clear reference to the relevant multilateral bodies, including the IAEA and OPCIN. This constitutes a real breakthrough in the area of international relations and reflects the common commitment of 78 ACP countries and 25 EU Member States to the non-proliferation of WMD.

- Development strategies have been improved through a series of amendments. These include a specific reference to the MDGs, facilitation of non-state actor access to indicative programme resources, recognition of local authorities as actors in the partnership, and enhancement of regional co-operation between ACP states and other developing countries.

- The Investment Facility has been made more flexible by amending the conditions attached to loans and interest-rate subsidies, exchange-rate-risk-sharing, and repayments to the Bank. The Facility is now subject to a joint performance review halfway through and at the end of the financial protocol.

Implementation and management procedures have been simplified and improved, inter alia through provisions relating to greater flexibility in the allocation of resources, untying of aid and, in particular, the creation of a larger reserve at the time resources are allocated. The reform also introduces the possibility of raising amounts in national and regional envelopes in the light of special needs, exceptional performance, or to cover international initiatives of benefit to ACP countries. The responsibilities of the managing and executing agents have been reformulated, including a greater strategic role for the national authorising officers.

1.8.2. New financing instruments and financing perspectives

Important work was done in 2005 on reform of the overall legal and financial framework of the aid programmes managed by the Commission. In place of the existing range of geographic and thematic instruments, six new instruments were proposed by the Commission in September 2004, three of them horizontal to respond to particular needs – humanitarian aid, stability and macro-financial assistance – and three with a defined geographic coverage for the implementation of specific policies: pre-accession, neighbourhood, development and economic co-operation. The Commission proposals have been subject to intense debate with the European Parliament and Council.

The Commission was heavily engaged in 2005 in preparing the next generation of aid programmes to be implemented in the framework of the Financial Perspectives 2007-2013.

In co-operation with the competent authorities and the relevant stakeholders of the beneficiary countries, as well as with the Member States and other donors, the Commission started work on the Strategy Papers that will guide the programming process for the different countries and regions. This process will be completed in 2006, to allow an implementation of the planned activities from January 2007 onwards.

Objectives and principles enshrined in the December 2005 European Consensus on Development have inspired the preparation of these country and region Strategy Papers. Particular emphasis has been placed on the improvement of aid effectiveness, by translating the commitments entered into by the EU and its Member States, in particular at the Paris High Level Forum, into the programming process.

The simplifications proposed by the Commission have a significant impact on the management of thematic programmes in particular. The different existing thematic regulations will be integrated into these new enabling regulations.

The future of thematic programmes has been of particular concern to the European Parliament and the Council, but also to European NGOs, and has generated debate in the context of the new legal framework. In response to these concerns, and in line with President Barroso’s announcement to Parliament of 12 April 2005, the Commission presented a first overall Communication on 3 August 2005[15]. This Communication sets out the Commission’s approach to the criteria for establishing thematic programmes, the scope and rationale for the programmes envisaged, and critical aspects of the management procedures foreseen for their programming, budgeting and adoption.

This will be followed by a set of detailed Communications defining the Commission’s approach to thematic programmes and outlining the specific contents of each thematic programme, including the respective strategies and delineation.

2. GEOGRAPHICAL FOCUS

This synopsis of EC international co-operation initiatives is presented on a geographical basis, organised around the six regions of the world where EU development co-operation is active. Each of these geographical sub-chapters has the same structure to permit parallel reading, starting with a general description of the EC’s work in that particular region, then providing details on implementation and concluding with a summary of results and perspectives. Charts, graphs and tables provide supporting data.

Some figures are given to illustrate the contents of this chapter but there is no overall information on financial transactions. The reader may find exhaustive financial information in Chapter 7. Regional activity tables include all commitments made during the period covered, in terms of ‘geographical’ budget lines as well as ‘thematic’ ones. Figures in the tables and graphs below include bilateral and multilateral Official Development Aid and Official Aid managed by EuropeAid.

2.1. Western Balkans

2.1.1. Introduction

Economic growth in the Western Balkans has been sustained in 2005 with an average 5.2% increase in GDP. The process of privatisation has progressed at an uneven pace. While a number of large sales took place, significant delays have been encountered in some countries, notably Albania and Serbia. Enterprise restructuring, notably in loss-making publicly owned enterprises, was again delayed by protracted decisions and poor management. Enforcement of property rights and contracts continued to encounter considerable difficulties throughout the region owing to weaknesses in the judiciary. This continued to have wide-ranging economic consequences and to hinder business decisions, notably investment, and market exit.

Politically, a number of important developments took place during 2005. In October the EU opened accession negotiations with Croatia. In December the former Yugoslav Republic of Macedonia was granted EU candidate status by the European Council, underlining the substantial progress made in completing the legislative framework related to the Ohrid Framework Agreement[16], as well as the country’s track record in implementing the Stabilisation and Association Agreement since 2001.

On 9 November, the Commission published its annual progress report[17] as part of the 2005 Enlargement package. Therein the Commission indicated that Albania had made sufficient progress to allow the proper implementation of a future Stabilisation and Association Agreement (SAA). Following Bosnia and Herzegovina’s (BiH) participation in the Stabilisation and Association Process (SAP), negotiations for a Stabilisation and Association Agreement (SAA) were launched on 25 November 2005.

In its Feasibility Report of 12 April 2005[18] the Commission concluded that Serbia and Montenegro is sufficiently prepared to negotiate an SAA with the EU, and negotiations started in December 2005. In line with the “twin-track” approach, negotiations will be held with the State Union or the Republics in their respective fields of competence. On 20 April 2005, the European Commission adopted a Communication to the Council ‘A European Future for Kosovo’[19], reconfirming the Commission’s determination to help realise Kosovo’s European perspective.

The Stabilisation and Association Process is thus proving to be the right mechanism to provide stability to the region and make the EU perspective real.

2.1.2. Evolution of EU co-operation

Since the inception of the Stabilisation and Association Process at the EU-Balkans Summit in Zagreb on 24 November 2000, the main objective of Community co-operation with the Western Balkans has been to underpin this policy. The focus of the assistance to the region has thus evolved from physical reconstruction and basic economic recovery, in the early phases of the CARDS[20] programme, to areas which are at the core of the accession process, i.e. reform of the public administrations and legal approximation. During 2005, programmes in these countries have continued to support the establishment of a modern fiscal system and an effective tax administration, as a key element underpinning a functioning market economy.

The EC is also helping to reform the police and judiciary in several countries in order to provide the necessary support in addressing some of the key challenges affecting the region, such as organised crime and corruption. Programmes in the health sector, as well as vocational education and training systems in all these countries, are making a tangible improvement to people’s lives. A number of projects are also helping local governments deliver better public services of particular relevance to those which have initiated a decentralisation process.

The European Partnerships introduced for the Western Balkans in the Thessaloniki Agenda have become a regular tool for the identification of priorities and obligations to be met by the countries concerned. The Partnership priorities have become the basis for programming CARDS assistance, reflected in the Multi-Annual Indicative Programmes and Annual Programmes. As part of the 2005 Enlargement Package, the Commission’s Regular Report in November included, as an annex, a set of European Partnerships for the Western Balkan countries.[21]

Croatia has, since 1 January 2005, become eligible for the Enlargement pre-accession instruments – Phare, ISPA and SAPARD – but remains eligible for the CARDS Regional programme in 2005 and 2006.[22]

2.1.3. Regional co-operation and integration

EC assistance, via the national and the regional programmes in particular, has continued to promote regional co-operation, one of the priorities of the Stabilisation and Association Process.

On 25 October 2005 the Energy Community for South Eastern Europe Treaty was signed in Athens[23], with the aim of permitting the creation and efficient operation of a single regional electricity market and establishing a stable legal and economic framework to encourage investment and trade within the region. CARDS assistance supported this regional co-operation by financing the opening of the interim Energy Community Secretariat in Vienna in 2005.

In the transport sector, the EC financed the South East Europe Transport Observatory (SEETO) which supports technically the implementation of the “Memorandum of Understanding on the Development of the South East Europe Core Regional Transport Network” signed in 2004[24].

In the area of justice, freedom and security, many initiatives have been pursued in the fight against organised crime and in border management. A key challenge has been improvement of the trans-border co-operation capacity of the police and customs services. Ongoing regional police and judicial reform co-operation projects are furthering regional and international police co-operation capacities; these reforms are leading to greater regional co-operation between prosecutors and mutual legal assistance between the courts. The 2005 CARDS Regional Programme has been designed, inter alia , to support the SECI Regional Centre for combating trans-border crime, based in Romania, and to strengthen national platforms for international police co-operation.

The regional project on asylum, migration and visa policies, concluded in 2005, issued a Road Map for Integrated Asylum, Migration and Visa Management in the Western Balkans, and should now be followed up with the requisite measures at national level.

Highlighting the importance of regional co-operation as part of the Stabilisation and Association Process, Croatia remains eligible for participation in CARDS Regional activities.

2.1.4. Implementation

Currently, the respective EC Delegations implement CARDS assistance in Albania, Bosnia and Herzegovina and Croatia, while the European Agency for Reconstruction (EAR) manages most of the EC assistance in Serbia and Montenegro and Kosovo and in the former Yugoslav Republic of Macedonia. The CARDS regional programme is co-ordinated and implemented by the European Commission in Brussels.

On 23 December 2005, the Commission issued a report to the Council on the future of the European Agency for Reconstruction (EAR). The Commission proposes to discontinue the EAR, while seeking extension to 31 December 2008 in order to phase out activities under CARDS gradually. At the same time the Commission will prepare the implementation, from 2007, of the future Instrument for Pre-Accession (IPA) Regulation in a de-concentrated manner through its Delegations in the countries concerned. The report, recognising the success of the Agency in delivering reconstruction aid in the Western Balkans, highlights the importance of an even closer linkage between the political process and political dialogue, on the one hand, and financial assistance and implementation on the other, as well as the need to prepare beneficiary countries on assuming their own financial responsibility for the implementation of EC assistance.

The process of design, approval, procurement, tender specification and implementation has had to be adapted, since emphasis has moved towards ‘soft’ assistance – which, in contrast to ‘hard’ assistance (investment in infrastructure and/or equipment) aims to improve the legal and administrative regulatory environment through the approximation of laws to the acquis communautaire and to assist in institution building. Factors such as quality assurance, training, evaluation and monitoring play an ever greater role in ensuring that programmes meet the needs of the region and that lessons are learnt, in an increasingly complex context reflecting the political imperatives.

Credits committed under CARDS in 2005 were at 100%, corresponding to €519 million. Furthermore, programmes in the former Yugoslav Republic of Macedonia and for regional activities were reinforced at the end of the year by reallocating assigned revenues. The Kosovo programme was also reinforced. CARDS payment credits used in 2005 amounted to €345 million.

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Institution Building

In Serbia and Montenegro support was provided to the governments in their efforts to secure better public finance and tax collection, and to adopt complex legislation e.g. on bankruptcy, cadastre etc. The Employment Support Programme aims to help the Ministry of Labour, Employment and Social Affairs, as well as the Republic Employment Service (RES), fulfil their objectives and responsibilities. The support focuses, first, on institution building of the Ministry, the RES and the Republic Employment Council (REC) and, secondly, on regional employment councils in order to develop national employment policy and strategy. The establishment and implementation of an active labour market measures fund aims to address the needs of the unemployed in selected areas.

In Kosovo EC assistance has supported the institutional development of the Kosovo Institute for Public Administration (KIPA) through such initiatives as developing training curricula and strengthening the skills of KIPA core staff. EC assistance is building the capacity of the ministries – and in particular the Office of the Prime Minister (OPM) and the Office for European Integration Processes – to draft, implement and enforce reforms, laws and policies compatible with the acquis and EU standards, in order to participate effectively in the Stabilisation and Association Process (SAP).

The Commission is engaged in establishing a regional School for Higher Education in Public Administration Reform. The 2005 CARDS regional programme foresees funds that will lead to the first EU-SAP training programme for senior servants and trainers, together with transnational courses.

For the first time, the 2005 Regional Action Programme (AP) identified an indicative number of Community Agencies with which SAP countries could initiate co-operation. These are: the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), the European Monitoring Centre for Racism and Xenophobia (EUMC), the European Maritime Safety Agency (EMSA), the European Aviation Safety Agency and the European Agency for Safety and Health at Work. Co-operation with the European Environment Agency should continue.

Justice and Home Affairs

Bosnia and Herzegovina has worked to strengthen the State’s capacity to develop and implement an asylum and migration policy, and integrated border management. The mandate of the EU Police Mission (EUPM), which ended on 31 December 2005, has been renewed. The existing co-ordination mechanism between the EUPM and the EC that operates under the CARDS programme will continue.

Economic and Social Development

In the former Yugoslav Republic of Macedonia the Ministry of Economy has received continuous assistance on SME-related policy development and the strengthening of the relevant ministerial departments and agencies. This assistance has been backed by parallel programmes contributing to an enabling environment for SMEs, including initiatives focused on competition protection, banking sector reform, trade legislation, intellectual property rights, standardisation, metrology, accreditation and quality validation. Support has been provided for the establishment of a Human Resource Development Fund for SME managers, developing the human capital in local companies.

At local level, there are 10 on-going Neighbourhood Programmes approved under the 2004 CARDS Regional Programme. Progress has been complicated by the need to link existing programmes and different budget sources. However, most programmes with Member State partners are well advanced and several calls for proposals have been launched during 2005, with a large oversubscription of CARDS country participation.

In the field of education, the European Commission continued to implement the Tempus programme in the Western Balkans. In 2005, the EC committed €11 million for university co-operation projects involving higher education institutions from the CARDS region.

Environment and Natural Resources

Much of the Western Balkans lacks adequate environmental planning. Recent neglect has left many scars, both visible and invisible. EU assistance is addressing this issue in a number of ways. Support has been provided for approximation to EU environmental legislation and capacity building of institutions responsible for environment. Urgent attention has been paid to "hot spots" that present immediate threats, such as local contamination caused by heavy metal and other by-products from old industries. Aid includes rapid remedies in the form of specific "quick-start" programmes providing funds to focus the attention of banks, international financial institutions and non-governmental organisations.

At regional level, assistance is provided to the Regional Environmental Reconstruction Programme for South Eastern Europe (REReP) in order to help countries meet their SAP obligation of regional co-operation. A CARDS regional assistance project supports the REReP secretariat and also finances the Balkans Environmental Regulatory Compliance and Enforcement Network (BERCEN)[25].

In Albania the EC is currently supporting a ‘hot spot’ remediation project, and other projects on environment legislation, awareness-raising, and pollution abatement and control are planned.

Providing a boost to Kosovo’s energy sector

After a decade of neglect and poor investment and the devastation caused by the 1999 conflict, Kosovo’s energy sector was in crisis. The main Kosovo B power plant was inoperative, equipment was obsolete and suffered from a lack of maintenance and investment. Most workers were unskilled in operational and safety practices. Moreover, a poor system for collecting consumer payments meant little revenue was available to reinvest in routine maintenance activities and upgrade equipment and technology. Many people sat in darkness, with much of Kosovo starved of electricity. In 1999, the EU stepped in, providing emergency electricity imports and covering operational and emergency maintenance costs. At the same time, the EU planned a long-term rehabilitation of the existing infrastructure.

The biggest challenge was to overhaul both generation units at Kosovo B, the main power plant. Through the European Agency for Reconstruction, the EU financed the upgrading of the coal mines that fed the power plants and supplied ancillary equipment to move the coal to them. The Agency also helped improve transmission and distribution systems supplying households, businesses and public services such as hospitals. To support the efficient use of energy, the EU rehabilitated Kosovo’s three district heating plants.

Today, through carefully and properly selected investments, the EU is working with KEK, the Kosovo energy company, to improve its management and enhance its ability to operate, maintain and modernise the energy sector. EU funds are also being applied to the establishment of a liberalised energy market and its integration into the regional energy market of South East Europe. One of Kosovo’s most valuable natural resources is the vast amounts of high-quality lignite in its opencast coalmines. The construction of new lignite-fired power generating units and the development of the lignite mines will help Kosovo produce electricity from its own resources and provide a window of opportunity for economic development.

Infrastructure

In the former Yugoslav Republic of Macedonia the European Agency for Reconstruction, in conjunction with the European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD), has financed a major rehabilitation of the E75 Road, part of the Trans-European Road Network (Corridor X) linking the former Yugoslav Republic of Macedonia with its neighbours and ensuring high-quality transport modes across the Balkans.

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2.1.5. Co-operation with Member States and other donors

Co-operation with EU Member States takes the form of both sharing information and experience in regular scheduled meetings, usually in the receiving country, and of practical co-operation on projects and programmes in co-financing operations. This provides opportunities to develop common positions on assistance issues of mutual concern, to exchange information on the current implementation status of EC programmes, and increasingly to co-ordinate EC and EU Member States’ bilateral assistance.

The Twinning instrument[26] is increasingly being used to transfer and apply knowledge, expertise and experience from EU Member States’ institutions in particular, in order to strengthen the administrative and judicial capacities of the Balkan countries.

Another type of co-ordination exists in some areas between the EC and other international donors such as the World Bank, the United Nations agencies, etc. As an example by the mid-2005, in Serbia and Montenegro, more than €60 million of EC grant funds had contributed to the mobilisation of some €730 million of EIB loan funds.

The Joint Office for South East Europe (SEE) was established by the EC and the World Bank in 1999 with the role of supporting these institutions in their task of co-ordinating international assistance for the reconstruction and development of South East Europe. Its work has continued in 2005, with particular focus on supporting the Infrastructure Steering Group and reporting on overall assistance to the region.

A Donor Co-ordination meeting took place in Brussels in November 2005 with the aim of fostering cross-country learning about current practices in the region. The meeting initiated a move towards an agreed definition of co-ordination to guide future activities and helped identify the next steps for advancing the co-ordination agenda across the region. One conclusion of the meeting was that government ownership on the matter was vital.

While there has been tangible progress on co-ordination at country level, there is still room for improvement. One example of how to improve donor co-ordination within the receiving countries is the Integrated Planning System (IPS) approved by the former Albanian Government in May 2005. This completely reforms the way in which the latter intends to manage domestic and foreign public investment within Albania.

2.1.6. Overview results-oriented monitoring (ROM)

During 2005 independent monitors assessed 100 projects, covering a total budget of €92.8 million in the Western Balkans/CARDS region. For the second consecutive year the region showed a remarkable improvement.

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Scores can range from 4 (excellent performance) to 1 (serious deficiencies in performance). A 2.5 score indicates that performance is on track and achieving expected results.

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To ensure consistency of methodology, each of the five criteria comprises individual sub-criteria which the monitor has to consider, comment on and rate: scores for the criteria are then calculated from the ratings for the sub-criteria. This new and more exact method of calculation was introduced end-2004. Consequently, while the original method of calculating from the (rounded) scores for each criterion gives the result 2004 (a), the overall averages for 2004 (b) and 2005 are now calculated from the ratings for each sub-criterion, in order to give a more precise evaluation.

All priority areas demonstrate good average scores for 2005. The macroeconomic and social sectors, as well as institutional capacity building and good governance, recorded particularly high scores. Since the CARDS programme aims primarily at preparing partner countries for EU candidate status, institutional capacity building is of pivotal importance.Improvements can also be attributed to an increased sense of ownership among the stakeholders implementing the projects.

Relevance shows good performance with a slight improvement from 2.70 in 2004 to 2.74, although it remains the relatively ‘weakest’ point of the whole region. Low quality of preparatory documents, frequent failure to adequately involve project partners and beneficiaries, as well as the relatively long period between project design and project launch, are cited among the factors that might be improved.

2.1.7. Conclusions and perspectives

Major political developments have taken place in the region, sending out a very positive signal. The European perspective is real and provides a powerful incentive for the reforms that contribute to an alignment towards the EU. As the major donor in the Western Balkans, EC funding has had a major impact on the rate of adoption of this process and is encouraging these countries to evolve in order to join the Union at a future stage. The instruments successfully developed in the accession process are now being applied widely to candidate and potential candidate countries and are bearing their fruits. With well targeted assistance, the Western Balkan countries benefit from stronger institutions, more reliable judicial and police systems, and better infrastructures, all of which have a positive impact on economic and social development and on the wellbeing of their societies.

The new Instrument for Pre-Accession (IPA), which will replace the existing pre-accession instruments and CARDS from 2007 onwards, will cover assistance to candidate and potential candidate countries. It will simplify the provision and co-ordination of assistance and regional co-operation in particular. 2006 is going to be an important year for its preparation. The Stabilisation and Association Process requires a daily relationship at local level and a learning approach to Community methods. This is best achieved through proximity and the promotion of ownership in these countries, including a gradual transfer of responsibilities for the management of EC funds. The IPA regulation is particularly designed with this aim.

2.2. Eastern Europe and Central Asia

2.2.1. Introduction

The political dialogue with the new neighbours of the enlarged EU made significant progress, especially in the context of the development of the European Neighbourhood Policy (ENP).

Since the Orange revolution, Ukraine has taken strides in promoting political and economic reforms. The EU is a key partner in supporting this transition process to democracy and a market economy. However, Ukraine’s effort to maintain the reform momentum was to some extent affected by the political difficulties that the country experienced following the Orange Revolution which came to the open in the change of government in September 2005.

In March the Council appointed Mr. Jacobovits de Szeged as Special Representative (EUSR) for Moldova. The focus of the EUSR’s efforts is the settlement of the Transdnistria conflict. In this context, the EU deployed its Border Assistance Mission to Moldova and Ukraine. The Mission will help prevent smuggling, trafficking and customs fraud, and will also play an important role in developing preconditions for a peaceful settlement of the Transdnistrian conflict. A further step forward in EU-Moldova relations was the opening, in September, of a Delegation of the European Commission in Chisinau.

The situation with regards to Human Rights and democracy in Belarus remains a matter of grave concern and has recently further deteriorated. The delivery of assistance from international donors is also severely constrained.

The development of the Caucasus region, as well as the relations between its three countries, is still hampered by the ‘frozen conflicts’ in Nagorno Karabakh, South Ossetia and Abkhazia. Additional concern was expressed in 2005 over the November parliamentary elections in Azerbaijan, which were qualified by the International Election Observation Mission as failing to “meet a number of OSCE commitments and Council of Europe standards and commitments for democratic elections.”[27].

The countries of Central Asia faced similar obstacles but very different prospects for the future. Kazakhstan continued to strengthen its position as regional leader thanks to steady economic growth. The country wishes to be internationally recognised as a market economy and remains committed to diversifying its economy. The December presidential elections were criticised by the OSCE for not meeting a number of international standards for democratic elections. In Tajikistan, 2005 has seen a trend towards the reversal of democratic reforms, such as freedom of the media. Although official figures show economic growth, there are signs of increasing poverty in rural areas. The OSCE criticised the February parliamentary elections for failing to meet key international standards.

In March a popular revolt took place in Kyrgyzstan, sparked by allegations of government interference in parliamentary elections and fuelled by poverty and corruption. The revolt succeeded in removing the incumbent President, and presidential elections were held in July 2005. However, the regime change led to instability, economic growth stagnated and the share of the informal economy increased.

Following the refusal of the Uzbek authorities to allow an independent international enquiry into the events in Andijan, all scheduled technical meetings under the EU-Uzbekistan Partnership and Co-operation Agreement were partially suspended, and the allocation to Uzbekistan under the TACIS programme reoriented and reduced.

In July the Council appointed a Special Representative of the European Union (EUSR) for Central Asia. The appointment reflects the wish of the EU to play a more active political role in Central Asia and to ensure co-ordination and consistency of EU external actions in the region.

2.2.2. Evolution of EU co-operation

The introduction of the European Neighbourhood Policy (ENP) was particularly notable in Moldova and Ukraine, where implementation of the ENP Action Plan has started. The Government of Moldova has brought the ENP Action Plan into the centre of its reform strategy and, in Ukraine, progress has been noted across a number of areas, including energy, transport and environment[28]. The ENP Action Plan for Ukraine was jointly endorsed by the EU and Ukrainian Government at the EU-Ukraine Co-operation Council in February 2005.

Because of the prevailing political climate, the EC continued its support to the needs of the population of Belarus, and has decided to step up its presence in the country by opening a new regionalised Delegation in Minsk.

A step forward in the strategic partnership with Russia was taken in the EU-Russia Summit in May 2005, when a single package of Road Maps was adopted for the creation of the four Common Spaces[29]. These Road Maps set out shared objectives for EU-Russia relations as well as the actions necessary to achieve these objectives.

During 2005 the EU also continued its intensive co-operation with the Caucasus countries. The Commission closely monitored the progress made by each country with regard to political and economic reforms. As a result of this process, in March 2005 the Commission produced Country Reports for each of the three countries and the negotiations on ENP Action Plans for Georgia, Armenia and Azerbaijan started in November 2005.

During 2005, dialogue with Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan was further developed at the bilateral Co-operation Committee/Council meetings as well as the Sub-Committee on Trade and Investment and the Joint Committee under the Trade and Co-operation Agreement. The dialogue covered a wide range of issues relevant for the countries’ relations with the EU, including implementation of the co-operation programme, economic and trade relations, foreign policy, and democracy and Human Rights.

The year 2005 has seen major preparatory work in deploying in TACIS countries the institutional “twinning” instrument, aiming at twinning administrations in beneficiary countries with partner administrations in EU Member States. Programme offices are being established in Azerbaijan, Moldova and Ukraine. A major workshop is also scheduled be held in Kyiv in early March 2006 on this twinning instrument, which anticipates the Neighbourhood Policy and its European Neighbourhood Policy Instrument (ENPI).

2.2.3. Regional co-operation and integration

TACIS continued to foster regional co-operation between the partner countries, in particular on global issues including transport, energy and environment. Moreover, energy and transport issues have been given a higher profile through the regional co-operation framework established as a result of the November 2004 Ministerial Conference in Baku.

In 2005, assistance was provided to further develop the interconnection of energy networks (especially oil and gas pipelines) through the Inogate programme, to reinforce and extend the transport corridors with Traceca assistance, and to enhance co-operation in environmental protection. In the context of the ENP, increased assistance was provided to crucial areas such as border management and the fight against terrorism and organised crime.

The Border Management for Central Asia – Central Asia Drug Action Programme (BOMCA-CADAP) made good progress in the Central Asia region, notably in Tajikistan where institutional strengthening activities were prioritised to help the authorities, following the withdrawal of Russian border forces from the Tajik-Afghan frontier.

2.2.4. Implementation

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Institutional, legal and administrative reform

The TACIS Programme pays particular attention to justice, law and security in the partner countries. Notable successes in this area were achieved in the countries of the Caucasus in 2005.

In Azerbaijan, assistance to judicial reform was provided in the penitentiary sector and in the better execution of decisions by the Court. Southern Caucasus countries are also co-operating via the TACIS regional programme on the fight against drugs[30]. In Georgia, a training programme was completed for the country’s 750 prosecutors. The Procuracy reform project covered the European Convention on Human Rights, ethics, the criminal procedural code, and adversarial proceedings. In Turkmenistan, the EU is supporting reform of the budgetary process and the establishment of a management system to monitor the effective use of government resources.

In the field of statistical reform, the TACIS Statistics 7 Programme supported a range of projects to develop the capacities of national statistical offices. Using EU statistical methods and standards as the basis for technical assistance, projects were implemented in Moldova, Kazakhstan and Kyrgyzstan during 2005.

Private sector and economic development

TACIS assistance ranges from high-level advice on trade, economic and budgetary policy to helping align legislation with international practice in areas such as competition, banking, supervision, accounting and quality standards. For instance, the EU is advising SMEs in Russia on management principles that meet international standards. These projects are providing training modules on systems processes, performance improvement, employee empowerment and customer focus.

Ukraine and Moldova have received enhanced support in progressively integrating EU Internal Market principles and rules into their economies on financial products, insurance schemes, competition, standardisation and consumer protection. WTO accession conditions have also been addressed.

In Azerbaijan, Georgia and Armenia, EU activities in the private sector continued to focus on encouraging economic development and diversification. The TACIS Programme included support for the development of SMEs and of the local market infrastructure for entrepreneurship in the less developed regions. Complementary assistance was also provided to the tax information system in Azerbaijan and to the introduction of International Accounting Standards, in order to improve the business climate in these countries.

In Kyrgyzstan, the EU launched a project aimed at improving the investment climate and increasing Foreign Direct Investment (FDI) flows into the country through practical support to the government in setting up and operating an Investment Promotion Agency.

Social consequences of transition

In its efforts to help the partner countries mitigate the social consequences of transition, TACIS programmes also offer extensive support in the areas of poverty reduction, health, education and social services. Of particular importance are the primary health care projects in Georgia, Moldova and Ukraine, where the spread of HIV/AIDS was also addressed. These projects are helping the countries set up or restructure, equip and manage the funding of their primary health care systems. TACIS is also helping Russia and Ukraine implement reforms of their social policies by introducing improvements in the targeting and performance of their welfare systems, so that the needs of the most vulnerable groups are better addressed.

In Tajikistan , Kyrgyzstan and Uzbekistan projects directly addressing poverty alleviation and conflict prevention are being implemented in pilot regions, notably in the Ferghana Valley. In Tajikistan and Kyrgyzstan, these projects are complemented by the Food Security Programme. Budget support instalment releases under the Food Security Programme in these two countries against pre-defined benchmarks amounted to €6.9 million and €7.9 million respectively in 2005. The Food Security Programme targets rural development and social protection.

In the TACIS region, the European Commission continued to provide support to the higher education sector through the Tempus programme. A total of €20.8 million was committed in 2005 to finance projects that promote higher education modernisation and alignment with the principles of the Bologna process, in countries that have signed the Bologna Declaration.

Infrastructure networks

In Ukraine , a new project will assess the needs and propose initiatives to develop the cross-border element of the transport network, allowing better links between Ukraine and the EU. The same project will integrate specific components for Belarus and Moldova .

At a broader regional level, TACIS continued its support to TRACECA. In April 2005 the Fourth Annual Meeting (Conference) of the Intergovernmental Commission (IGC) TRACECA took place in Baku, Azerbaijan.

Safer Skies over Central Asia and Russia

In an area as vast as Central Asia, aviation is a vital transport mode for people and for goods that need to be moved rapidly. It is not the role of TACIS to replace ageing aircraft fleets, since the programme is essentially about the provision of technical assistance rather than acting as a financing tool. TACIS does, however, support the region by bringing expertise to the numerous complex support functions on which safe and efficient aviation depends. In this context, the Programme has provided support to the Ministry of Transport and Communication of Kyrgyzstan in developing its Department of Air Policy and its national airline.

TACIS has provided Russia with computer equipment for air traffic controller training and has also made extensive assistance available for the development of the so-called Southern Ring air routes. It also runs a programme to help the approximately 400 air traffic controllers in Russia improve their English language skills to a level that enables them to perform their tasks efficiently and safely. TACIS is making the air routes across Russia safer, not only for domestic flights but also for airlines overflying from the EU to Japan via the most direct route to the Far East across Siberia.

Nuclear safety

The Commission continued its efforts in 2005 to improve the safety of Nuclear Power Plants (NPPs) of Soviet design.

Large Plant Improvement Projects (PIPs) were designed and contracted for both Ukraine (South Ukraine, Rovno and Khmelnitski) and Russia (Novovoronezh, Smolensk). In the meantime on-site assistance consultants – foreign experts providing advice and training on the management of nuclear installations and selected through a new procedure developed in 2003 – have continued their activities at various NPPs: Kola, Kalinin, Khmelnitski, Zaporozhe and southern Ukraine.

In Ukraine , Russia and Armenia , TACIS provided the assistance of EU regulators to the Nuclear Regulatory Authorities. This activity has been strongly linked to the implementation of plant improvement projects at the sites concerned.

The environmentally friendly dismantling of the Chernobyl nuclear power plant is now underway: this includes several EU-supported initiatives. The Commission paid the last part (€22 million) of the second pledge (€100 million) to the Chernobyl Shelter Fund, managed by the European Bank for Reconstruction and Development (EBRD), and a new pledge for €49.1 million has also been made. Meanwhile, the construction of a radioactive waste treatment plant (value €55 million) has been undertaken in anticipation of the dismantling of the power plant. In spite of the difficulties inherent in the construction of complex facilities of this nature, the plant is expected to come into service in 2006-2007.

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2.2.5. Assessment of the EC’s contribution towards poverty reduction and towards the achievement of the MDGs

Most of the TACIS region still sees low levels of prosperity, and poverty is one of the main concerns in almost all partner countries. Therefore, although poverty reduction is not explicitly defined as a goal, it is to a great extent detailed in most projects.

Poverty is mainly tackled through the programmes aimed at mitigating the social consequences of transition. In Armenia, TACIS provides support to the Ministry of Agriculture in designing reform policies that will combat poverty and boost food security. Policy advice is also provided in Azerbaijan , Russia and Moldova , mainly in the area of social protection and welfare, which are priorities of national poverty reduction strategies. The approach is different in Georgia , Tajikistan , Kyrgyzstan and Uzbekistan , where TACIS implements pilot poverty reduction schemes linked to a community-based approach in order to reactivate rural development.

The TACIS programmes also contribute to the achievement of the health-related and environmental MDGs. They support comprehensive reforms of the primary health care systems in Georgia and Moldova . In Russia , support is particularly focused on combating HIV/AIDS. In Central Asia for example, Kazakhstan , Kyrgyzstan and Tajikistan need to enhance the quality of service provision and improve access to social services if the MDGs are to be achieved by 2015. This relates in particular to child mortality, maternal mortality, and HIV/AIDS and TB incidence.

Environmental sustainability is promoted through improved water management in different geographical areas, including the Aral basin in the Kyzylorda region of Kazakhstan. TACIS also contributes to waste water management in the Saint-Petersburg area of North-West Russia.

2.2.6. Co-operation with Member States and other donors

TACIS programmes continue to ensure maximum co-ordination and complementarity with the interventions of other donors.

The consultation process takes place at different levels, from programming to implementation; its format varies across the beneficiary countries. In some instances, co-ordination is focused on key sectors, such as assistance to the Chernobyl-affected areas of Belarus . In other cases, the EU has taken the lead in the co-ordination process. An example of the latter is health sector co-ordination in Russia , organised by the EC Delegation in Moscow.

At the project level, Memoranda of Understanding (MoU) are increasingly used to underpin the co-ordination process. For example, in Georgia , the EU signed an MoU for a Primary Health Care project with the World Bank and the UK Department for International Development (DfID), and another for Rural Development with the DfID, UNDP and NGOs. In a less formalised way, 2005 has seen very successful co-operation with the World Bank in Azerbaijan in the area of financial accounting standards. In Moldova and Ukraine, co-ordination with the UN agencies and the World Bank has improved. It should also be noted that other donors, not only EU Member States, are adjusting their assistance and co-operation to issues and needs mentioned in the ENP Action Plans.

In Central Asia, the establishment of a Consortium of EU Member States, within the framework of BOMCA-CADAP, has led to effective donor co-ordination on border management and drug issues. The partnership has also been extended to include the US, Russia and international organisations working in the field. At the second BOMCA-CADAP Donor Co-ordination Conference, in September 2005, the donors agreed on a partnership approach within the sectors.

2.2.7. Overview results-oriented monitoring (ROM)

In 2005, 302 projects with a total budget of €518.3 million were monitored in this region, showing good results across all sectors for the third consecutive year.

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Scores can range from 4 (excellent performance) to 1 (serious deficiencies in performance). A 2.5 score indicates that performance is on track and achieving expected results.

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To ensure consistency of methodology, each of the five criteria comprises individual sub-criteria which the monitor has to consider, comment on and rate: scores for the criteria are then calculated from the ratings for the sub-criteria. This new and more exact method of calculation was introduced end-2004. Consequently, while the original method of calculating from the (rounded) scores for each criterion gives the result 2004 (a), the overall averages for 2004 (b) and 2005 are now calculated from the ratings for each sub-criterion, in order to give a more precise evaluation.

Potential sustainability is the strongest criterion, with an overall score of 2.91. However, the composite nature of the sustainability criterion indicates that, while environmental, technological and socio-cultural adequacy in particular return high scores, financial/economic viability is often much weaker, particularly in the Caucasus and Central Asia. The implication of low economic viability reflects the difficulty these countries face in shouldering the additional financial burdens placed by institution-building projects on their already strained state budgets.

The fact that policy support and economic viability score higher in national projects than in regional programmes suggests that national ownership of a project positively affects project performance.

With its good performance of 2.79, efficiency is the least positive criterion in 2005. Monitors’ observations notably indicate room for improvement in the timeliness of inputs, which seem to be late due to the delayed starting of projects.

2.2.8 Conclusions and perspectives

As from 2007, the new regulations, ENPI (for ENP countries and Russia) and DCECI (for Central Asia) will include an intensified dialogue with the partner countries as well a high commitment from their side in all fields, adoption of adequate policies to address economic growth and poverty reduction, approximation of legislation to the EU standards, democratic reforms and respect of Human Rights and the rule of law. Regional co-operation and cross border co-operation will be fostered, and further support should be given for a peaceful resolution of conflicts in the Caucasus region.

Donor co-ordination, particularly with the EU Member States, will be stepped up and the visibility of EU co-operation will be given close attention, notably in co-financing and pool funding arrangements.

2.3. Mediterranean and Near and Middle East

2.3.1. Introduction

The year 2005 marked the 10th anniversary of the Barcelona Declaration (1995) and of the creation of the Euro-Mediterranean Partnership which comprises 35 members, 25 EU Member States and 10 Mediterranean partners: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria, Tunisia and Turkey. Libya has had observer status since 1999. Several events were organised to review progress made in the past decade and to examine new initiatives aimed at maintaining policy momentum. This culminated in a Euro-Mediterranean Heads of State Summit that adopted a five-year work plan to take the Barcelona Process forward. The Euro-Mediterranean Anna Lindh cultural foundation was established in Alexandria. Work continued on the implementation of the bilateral European Neighbourhood Policy Action Plans, as a complement to the regional Barcelona Process.

The political situation in the region showed some signs of improvement although major conflicts persisted. The security situation in Iraq remained very tense, with continued high levels of violence. Important progress was made however on the political front when a provisional constitution was adopted and elections were held, with participation from all groups in society. The Middle East Peace Process made some progress with the unilateral withdrawal of Israel from the Gaza Strip, clearing the way for Palestinian self-rule in that area. Presidential and municipal elections were held in the Palestinian Territories . Syrian troops withdrew from Lebanon in the wake of the murder of former Prime Minister Hariri. The government of Algeria sought closure for a long period of