EXPLANATORY MEMORANDUM

The “Agenda for Change”[1] mentions that inclusive and sustainable economic growth is crucial to long-term poverty reduction. Such economic growth requires a favourable business environment, increase of local competitiveness and new ways of engaging with the private sector via existing financial instruments or others yet to put in place.

The 4th High Level Forum on Aid Effectiveness in Busan called for a more direct private sector engagement in order to advance innovation, create income and jobs, promoting SMEs and entrepreneurship, mobilize domestic resources and further develop innovative financial mechanisms.

The above has guided the joint EU-ACP discussions on private sector development support that should be reflected in the programming and implementation of the 11th European Development Fund (hereinafter referred to as 'EDF').

These aspects and the evolution of the international context, in particular the considerable number of actors and modalities able to provide effective private sector support imply that programmes are to be implemented through organisations that have shown their capacity to deliver high quality expertise in a cost-effective way.

Based on this, the modification of Annex III to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States of the other part, signed in Cotonou on 23 June 2000[2] (hereinafter referred to as the 'ACP-EU Partnership Agreement'), as last amended in Ouagadougou, Burkina Faso, on 22 June 2010[3], concerns the deletion of references to the Centre for the Development of Enterprise (hereinafter referred to as 'CDE').

The Commission proposes that the Council of the European Union adopts the attached Decision.

2014/0184 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken by the European Union within the ACP-EU Council of Ministers regarding the revision of Annex III of the ACP-EU Partnership Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 209 (2) in conjunction with Article 218 (9) thereof,

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States of the other part, signed in Cotonou on 23 June 2000[4] (hereinafter referred to as the 'ACP-EU Partnership Agreement'), as last amended in Ouagadougou, Burkina Faso, on 22 June 2010[5],

Having regard to the proposal from the European Commission,

Whereas:

(1) Article 100 of the ACP-EU Partnership Agreement states that its Annexes Ia, Ib, II, III, IV and VI may be revised, reviewed and/or amended by the ACP-EU Council of Ministers on the basis of a recommendation from the ACP-EU Development Finance Cooperation Committee.

(2) At the 4th High Level Forum on Aid Effectiveness in Busan, the Parties to the ACP-EU Partnership Agreement called for a more direct private sector engagement in order to advance innovation, create income and jobs, promoting SMEs and entrepreneurship, mobilize domestic resources and further develop innovative financial mechanisms.

(3) Taking into account the above and the evolution of the international context, in particular the considerable number of actors and modalities able to provide effective private sector support, related programs are to be implemented through organizations that have shown their capacity to provide high quality expertise in a cost-effective way.

(4) The modification of Annex III concerns the deletion of the references to the Centre for the Development of Enterprise (hereinafter referred to as 'CDE').

HAS ADOPTED THIS DECISION:

Article 1

1. The position to be adopted by the Union in the ACP-EU Council of Ministers regarding the revision of Annex III to the ACP-EU Partnership Agreement is established under the terms of the draft Decision of the ACP-EU Council of Ministers annexed to this Decision.

2. Minor changes to the draft Decision may be agreed by the representatives of the Union in the ACP-EU Council of Ministers without further decision of the Council.

Article 2

After its adoption, the Decision of the ACP-EU Council of Ministers shall be published in the Official Journal of the European Union.

Done at Brussels,

For the Council

The President

[1] COM(2011) 637 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: “Increasing the impact of EU development policy: an Agenda for Change”.

[2] OJ L 317, 15.12.2000, p. 3.

[3] OJ L 287, 4.11.2010, p.3

[4] OJ L 317, 15.12.2000, p. 3.

[5] OJ L 287, 4.11.2010, p.3

ANNEX

to the

Proposal for a COUNCIL DECISION

on the position to be taken by the European Union within the ACP-EU Council of Ministers regarding the revision of Annex III of the ACP-EU Partnership Agreement

ANNEX Draft DECISION OF THE ACP-EU COUNCIL OF MINISTERS regarding the revision of Annex III of the ACP-EU Partnership Agreement

THE ACP-EUCOUNCIL OF MINISTERS,

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States of the other part, signed in Cotonou on 23 June 2000[1] (hereinafter referred to as the 'ACP-EU Partnership Agreement'), as last amended in Ouagadougou, Burkina Faso, on 22 June 2010[2], and in particular Article 100 thereof,

Whereas:

(1) Article 100 of the ACP-EU Partnership Agreement states that its Annexes Ia, Ib, II, III, IV and VI may be revised, reviewed and/or amended by the ACP-EU Council of Ministers on the basis of a recommendation from the ACP-EU Development Finance Cooperation Committee.

(2) At the 4th High Level Forum on Aid Effectiveness in Busan, the Parties to the ACP-EU Partnership Agreement called for a more direct private sector engagement in order to advance innovation, create income and jobs, promoting SMEs and entrepreneurship, mobilize domestic resources and further develop innovative financial mechanisms.

(3) Taking into account the above and the evolution of the international context, in particular the considerable number of actors and modalities able to provide effective private sector support, related programs are to be implemented through organizations that have shown their capacity to provide high quality expertise in a cost-effective way.

(4) The modification of Annex III concerns the deletion of the references to the Centre for the Development of Enterprise (hereinafter referred to as 'CDE').

HAS DECIDED AS FOLLOWS:

Article 1

Annex III to the ACP-EU Partnership Agreement is amended as follows:

1. The title of Annex III is replaced by the following:

‘Institutional Support’

2. Article 1 is replaced by the following:

‘Cooperation shall support the institutional mechanism to promote agriculture and rural development. In this context, cooperation shall help to strengthen and reinforce the role of the Technical Centre for Agricultural and Rural Cooperation (CTA) in ACP institutional capacity development, particularly information management, in order to improve access to technologies for increasing agricultural productivity, commercialization, food security and rural development.’

3. Article 3 becomes Article 2 replacing it.

Article 2

The initiation of the liquidation of the Centre for the Development of the Enterprise (CDE) is endorsed by this Decision as follows:

1. The ACP-EU Council of Ministers mandates the Executive Board of the CDE to take all appropriate measures to initiate the liquidation of the CDE, under the supervision of the ACP-EU Committee of Ambassadors.

2. The liquidation process shall be concluded by December 31, 2016 at the latest.

3. The liquidation of the CDE and all related expenses shall be financed by the 11th European Development Fund.

Article 3

The present Decision shall be adopted within the ACP-EU Council of Ministers.

This Decision shall enter into force upon its adoption.

Done at [...], [...]

For the Council of the European Union || For the ACP Council of Ministers

The Chair || The Chair

[1] OJ L 317, 15.12.2000, p. 3.

[2] OJ L 287, 4.11.2010, p.3