Table of Contents

1..... Chapter 1 - Delivering on commitments. 3

1.1. EU response to world developments in 2012. 5

1.2. Leading the way in development policy. 9

1.2.1. A more strategic approach: implementing the "Agenda for Change" 9

1.2.2. Responding to global challenges and supporting long-term reforms. 10

1.2.3. Making a difference: new instruments and aid modalities. 12

1.3. Keeping long-term promises. 13

1.3.1. Progress in achieving the MDGs and preparation of the post-MDG framework 13

1.3.2. Focusing on poverty. 18

1.3.3. Strengthening human rights and good governance. 20

1.3.4. Mainstreaming of cross-cutting issues. 21

1.3.5. Cooperation with non-state actors and local authorities. 22

1.3.6. Financing for development 24

1.3.7. The role of the private sector 26

1.4. Better and more effective aid. 27

1.4.1. Aid effectiveness and joint programming. 27

1.4.2. Cooperation with the donor community. 29

1.4.3. Cooperation with international organisations. 30

1.4.4. Coherence between development and other policies. 32

1.5. Outlook 2013. 34

2..... Chapter 2 - Implementation: geographic overview... 35

2.1. European Neighbourhood and the Middle East 35

2.1.1. European Neighbourhood & Russia. 35

2.1.2. Middle East 55

2.2. Sub-Saharan Africa & all ACP programmes. 58

2.2.1. South Africa. 72

2.2.2. Intra-ACP programmes (including water and energy) 75

2.3. Latin America & the Caribbean. 77

2.3.1. Latin America. 77

2.3.2. Caribbean. 90

2.4. Asia, Central Asia & the Pacific. 97

2.4.1. Asia. 97

2.4.2. Central Asia. 107

2.4.3. Pacific. 114

2.5. OCTs. 125

3..... Chapter 3 Implementation: thematic overview... 128

3.1. The thematic programmes. 128

3.1.1. Investing in people. 128

3.1.2. Non-state actors and local authorities in development 131

3.1.3. Migration and asylum.. 132

3.1.4. Environment and sustainable management of natural resources including energy 133

3.1.5. Food security. 136

3.2. Democracy and human rights. 140

3.3. Stability. 140

3.3.1. Crisis response and preparedness. 140

3.3.2. Global and regional trans-border challenges. 140

3.4. Nuclear safety. 140

3.5. Humanitarian assistance. 140

3.6. Macro-Financial Assistance. 140

4..... Chapter 4 Managing aid for results. 140

4.1. Monitoring project performance. 140

4.1.1. Project results: results-oriented monitoring. 140

4.1.2. Evaluation: review of the 2012 work programme. 140

4.1.3. Lessons learned. 140

4.2. Aid delivery modalities. 140

4.2.1. Developments in aid delivery modalities and channels. 140

4.2.2. Budget support 140

4.2.3. Blending of grants and loans/innovative financing. 140

4.3. Progress in aid management 140

4.3.1. Progress on qualitative issues in aid management 140

4.3.2. Simplification of procedures. 140

4.4. Communication & transparency. 140

4.4.1. Communication and visibility. 140

4.4.2. Transparency. 140

5..... Chapter 5 Financial annex.. 140

5.1. Introduction to financial tables. 140

5.2. Financial tables. 140

1. Chapter 1 - Delivering on commitments

Introduction

The European Union as a whole remains the largest donor of official development assistance (ODA) worldwide. In 2012 it provided collectively EUR 55.2 billion of ODA, which amounts to over 50 % of official global ODA (as reported by the OECD Development Assistance Committee - DAC).[1] 2012 was the first year of implementing the "Agenda for Change"[2] after its endorsement by the Foreign Affairs Council in May. Responding to the changing context of development cooperation it sets out a more strategic and effective approach to poverty reduction with a view to further increasing the impact of EU development policy.

The Agenda for Change inspired further discussions and proposals in 2012. The European Development Days (EDD) – an annual event for the debate of global issues and development cooperation – were held in Brussels in October 2012. They focused on inclusive and sustainable growth for human development in line with the Agenda for Change.

The recommendations of the Agenda for Change have also been incorporated into the proposals for the 2014-20 external financial instruments, as well as in the new programming instructions to EU Delegations. Several communications adopted during 2012 focused on specific aspects of the Agenda for Change. Throughout 2012 the EU pursued its policy of improving Policy Coherence for Development (PCD).

Supporting the objectives of "Sustainable Energy for All" (SE4ALL) gained important momentum in 2012. EU Development Commissioner Andris Piebalgs served as a member of the SE4ALL High Level Group launched by UN Secretary-General Ban Ki-moon. At the SE4ALL summit organised in April by the European Commission (henceforth the Commission) and the Danish Presidency of the Council of the European Union, Commission President José Manuel Barroso proposed the ambitious goal of helping developing countries to provide access to sustainable energy services to 500 million people by 2030. The Commission is mobilising significant resources to rapidly scale up its support for sustainable energy.

In the area of external relations, 2012 saw the deepening of relations with Europe's neighbours (with the goal of promoting democracy, stability and prosperity) and the continued building of strong strategic partnerships with existing and emerging global players. It was also the second full year of the operation of the European External Action Service (henceforth EEAS) which now oversees 141 EU Delegations worldwide.

Throughout the year, the EU continued to respond with determination to fast-changing situations in its Neighbourhood, with the aim of supporting and encouraging sustainable democratic transitions. The joint communication “Delivering on a new European Neighbourhood Policy”[3], adopted in May, gave an assessment of the implementation of the new approach in the Neighbourhood. Accompanied by a set of joint staff working documents[4], it showed the EU’s speed in laying the policy’s new foundations and that most partner countries have responded positively, indicating their readiness to pursue political and economic reform with increased determination and to engage more deeply with the EU. The joint communication "EU Support for Sustainable Change in Transition Societies"[5] adopted in October examines what the EU can offer in order to help countries in transition achieve successful and sustainable transformation.

The EU also swiftly cut back relations with countries violating human rights and imposed wide-ranging restrictive measures against repressive regimes. As a result, support was directed towards civil society and affected populations - most notably in Syria.

As part of its long-term commitment to the transition in Afghanistan the EU continued its work with international partners. It actively accompanied the process of reform and transition in Myanmar/Burma. The EU equally played a key role in reacting to the crisis in Mali and addressing security and development issues in the Sahel region.

Throughout 2012, the EU stepped up its engagement on regional and global challenges by promoting a more comprehensive and coherent approach through bringing together diplomatic initiatives, political dialogue, humanitarian aid, development assistance and security instruments (such as CSDP operations in the Horn of Africa and the Sahel). Since the adoption of the Horn of Africa Strategic Framework in November 2011, the political and security situation in the Horn of Africa (HoA) and the economic environment have developed favourably.

In 2012, the EU actively promoted development and stability in Asia and the Pacific by increasing the number of high-level bilateral visits and participating in regional fora (Asia-Europe Meeting (ASEM), Association of South-East Asian Nations (ASEAN), Pacific Islands Forum (PIF)). In particular, the EU signed new Partnership and Cooperation Agreements with Vietnam and the Philippines and acceded to the Treaty of Amity and Cooperation in Southeast Asia allowing wider cooperation across the policy board.

In 2012, the EU continued to vigorously support electoral processes around the world by sending Electoral Observation Missions and providing electoral assistance and support. It began preparations for the comprehensive "EU Strategic Framework and Action Plan on Human Rights and Democracy” across all EU external policies. This was in line with the Commission and EU High Representative for Foreign Affairs and Security Policy/Vice President (HR/VP)'s joint communication “Human Rights and Democracy at the Heart of EU External Action: Towards a More Effective Approach”[6].

The strengthening of the UN remains a key element of EU external action. In 2012 the EU continued to give priority to international peace and security, sustainable development and human rights, as well as an effective reform of the organisation itself. Follow-up of the Rio+20 outcomes and the preparation of the 2013 special event to follow up on progress on the Millennium Development Goals (MDGs) and the post-2015 framework were of particular note. Furthermore, the EU has continued to promote human rights, democracy and the rule of law. Following the 2011 adoption by the UN General Assembly, the EU has consolidated its ability to effectively represent the Union at the UN as envisioned by the Lisbon Treaty.

Progress was also made towards attaining the poverty reduction targets of the MDGs. For example those related to reducing extreme poverty, the provision of universal primary education, gender equality in primary education, and access to water have been - or are likely to be - reached by 2015. However, the world is still off-track at the global level as progress has been variable across regions, countries and population groups. Several targets linked to maternal and child mortality and access to sanitation are off-track.

1.1. EU response to world developments in 2012

Changes in the Arab world once again underlined the urgency of resuming negotiations between Israel and the Palestinians. During 2012, the EU continued to encourage both parties to return to the negotiating table in line with the Quartet statement of September 2011. Regrettably, despite the support of Jordan at the beginning of the year, these negotiations were not resumed. Reaffirming its commitment to a two-state solution, the EU expressed its increasing concern about developments on the ground that were threatening to make such an outcome impossible.

In response to the dramatic deterioration of the situation in Syria, the EU decided in 2011 to suspend bilateral financial assistance to the government of Syria and to impose a strong package of sanctions. At the same time the EU stepped-up its assistance to the Syrian population affected by the crisis and the overall EU contribution for humanitarian assistance reached almost EUR 300 million. The EU continued to call on the members of the UN Security Council to uphold their responsibilities in view of reaching a political solution to the conflict. The December Foreign Affairs Council (FAC) accepted the National Coalition of the Syrian Revolutionary and Opposition Forces as legitimate representatives of the Syrian People.

In the case of Libya, the EU sought to engage the provisional authorities in a dialogue covering key issues of concern. It continued to accompany the process of democratic transition, notably through the deployment of an EU Election Observation Mission (EU EOM) for the July General National Congress elections and through assistance to civil society, the security sector and governance.

The EU has increased its support to those other partners engaged in political and economic reforms, offering the prospect of deeper economic integration to Morocco, Tunisia, Jordan and Egypt, while also proposing to negotiate mobility partnerships. The Commission also stepped up support to civil society organisations throughout the region.

The EU continued to support sustainable reforms in Eastern European countries and to advance the political association and economic integration agenda with its partners. The main goal of the Eastern Partnership (EaP) remains to create conditions favourable to accelerating political association and deepening economic integration between the EU and Ukraine, Belarus, the Republic of Moldova, Armenia, Georgia and Azerbaijan. In May, the HR/VP and the Commission issued a roadmap listing key objectives, reforms which partners have committed to, EU support and expected results. This policy was endorsed by the EaP foreign ministers at their meeting in July 2012.

Good governance, respect for human rights and economic reforms have remained priorities in EU policy towards Africa. In support of relevant regional organisations, the EU was engaged in finding solutions to political problems in countries subject to Article 96 of the Cotonou Agreement (Zimbabwe, Madagascar, Guinea-Bissau, Guinea-Conakry). The EU has supported the constitutional transfer of powers in Malawi and Ethiopia and provided assistance to electoral processes in several countries including Senegal, Sierra Leone and Ghana.

Since 2010, in close coordination with the Governments of Mali, Niger and Mauritania, the EU prepared and implemented the EU Strategy for Security and Development in the Sahel with the objective of simultaneously promoting security, good governance and development at local, national and regional levels. In 2012, the implementation of the strategy helped to address the longer-term security and development impacts of the crisis in Libya.

In Mali, a coup d'état by the army in March 2012 precipitated a terrorist takeover and the violent imposition of an extreme version of Shari'ah Law in northern Mali, and political paralysis in the south. The EU played a key role bringing about international mobilisation, working to unblock the political situation, lead measures to rebuild the army and thus contributing significantly to the efforts of the African and French forces which intervened at Mali's request - and with UNSC approval - in early 2013. The EU remains determined to make a substantial contribution to the reconstruction, stabilisation and peace-building process in the north of the country in particular. The deployment of an EU CSDP training mission for the Malian Defence Forces was decided to help restore the chain of command, generate a credible threat of force and to inculcate a respect for international humanitarian law. The EU also committed to contribute financial support to an African-led International Support Mission in Mali.

In Niger, a new CSDP mission (EUCAP SAHEL) was launched in July 2012 to train internal security forces and reinforce coordination with Mali and Mauritania to tackle criminal activities, such as drug trafficking and terrorism. Several related counter-terrorist and security actions were accelerated and substantial additional funds provided to strengthen security management in the region.

The EU Strategic Framework for the Horn of Africa (HoA), adopted in November 2011, was implemented in 2012 through sub-strategies and action plans, including: the EU Comprehensive Approach to South Sudan; the development of counter-terrorism action plans to oppose the threats of terrorism and piracy, a discussion paper on the EU's approach in post-transition Somalia and the "Supporting the Horn of Africa's Resilience" (SHARE) initiative to improve the ability of people to withstand food insecurity and malnutrition. Additionally, a wide range of development cooperation projects and four CSDP missions and operations[7], currently ongoing in the HoA are contributing towards achieving the objectives of the Strategic Framework. The EU Special Representative (EUSR) for the HoA, working closely with the EUSR for Sudan and South Sudan, was appointed in December 2011 to contribute to the implementation of the Framework. In line with his mandate, the EUSR's focus during this first year was primarily on Somalia and, with the end of the political transition, is beginning to shift to the regional dimensions of the Somali conflict. Finally, with the exception of the European Union Aviation Security Mission (EUAVSEC), an EU Operations Centre was activated in March 2012 to support and coordinate EU CSDP action under the guidance of the Political and Security Committee (PSC).

The coups d'état in Mali in March and Guinea Bissau in April increased the threat of organised crime which had reached new levels of internal organisation and links to international terrorism. The increasing incidences of crimes such as piracy, the trafficking of drugs, people and arms etc. highlighted the need for an overall EU approach to crime in the wider Gulf of Guinea region (including the Sahel and Northern Nigeria). The need for a cohesive strategy was recognised and planning was started.

The first visit of President Kiir of South Sudan to Brussels in March 2012 was an important step towards developing a close and long-term partnership with South Sudan, the world's newest state, ranging from development cooperation to peace and security. In addition to pioneering joint programming with South Sudan, the EU launched the EUAVSEC mission in October 2012 to strengthen security at Juba International Airport. It is the EU's first engagement in the country under the EU's Common Security and Defence Policy. In cooperation with the African Union (AU), the UN and international partners, the Special Representative for Sudan and South Sudan continues to be at the fore of the EU’s efforts to support the resolution of outstanding issues between both states.

After the Presidential and Parliamentary elections of 28 November 2011 in the Democratic Republic of the Congo (DRC) the EU EOM made a series of recommendations to improve the next stages of the current electoral cycle (in provincial and local elections). Following the resumption of the conflict in eastern DRC, the EU promptly mobilised its efforts and diplomatic instruments, sparing no effort to contain the conflict and limit its humanitarian consequences. Alongside Presidents Kabila and Kagamé, President Van Rompuy participated in a UN high level meeting on the situation which provided an opportunity to condemn the rebellions in DRC and to encourage political solutions based on dialogue.

With its impressive economic performance, increasingly solid and widespread commitment to democratic values and human rights, and rising influence in multilateral organisations, the Latin American and Caribbean region continued to increase in importance for the EU during 2012.

In June 2012 both the Association Agreement between the EU and Central America and the Free Trade Agreement with Colombia and Peru were signed. Another essential step forward was the FAC's approval of the EU-Caribbean Joint Strategy in November, a significant document concerning relations with the Caribbean sub-region.

The EU and the Association of Southeast Asian Nations (ASEAN) intensified relations adopting of a Plan of Action for the period 2013-17 at the 19th Foreign Ministers’ Meeting in April in Brunei. The HR/VP also attended the 19th ASEAN Regional Forum ministerial meeting in July in Phnom Penh where she signed the EU's accession to the Treaty of Amity and Cooperation in South East Asia with the ten ASEAN Foreign Ministers. Further advancing the dialogue on issues of mutual security, the EU-ASEAN Senior Officials Consultation on Terrorism and Trans-national Crime took place in Bangkok in September. The 9th ASEM Summit on 5 and 6 November in Laos was another opportunity for Europe and Asia to continue their region-to-region dialogue.

On 28 April, the HR/VP inaugurated a new Office in Myanmar/Burma. As early as February on the occasion of European Commissioner for development Andris Piebalgs’ visit, the EU had decided on an exceptional package of development assistance for 2012-13 amounting to EUR 150 million, to support better access to education and healthcare and improve livelihoods of the Burmese population and to provide capacity building to some key ministries. The EU also supports the ethnic peace process through its assistance to people uprooted and affected by conflicts in Myanmar/Burma. During his visit to Myanmar/Burma in November, the President of the European Commission José Manuel Barroso reaffirmed the EU's support for the substantial reforms already underway and announced an EU contribution of EUR 700 000 as start-up funding to the Myanmar Peace Centre.

In June 2012, the FAC underlined the strategic importance of Central Asia for the EU in review the EU-Central Asia Strategy. The Council also highlighted security challenges associated with developments in Afghanistan. A high-level dialogue on the issue was agreed with Central Asian governments by HR/VP Ashton, at the EU-Central Asia ministerial meeting and during her subsequent tour of the region in November 2012. Human rights and the need to engage further with civil society remain important concerns for the region.

The Council conclusions in May reaffirmed the long-term commitment of the EU and its Member States to support Afghanistan during its transition, pledging to maintain levels of assistance post-2014 and to support Afghan efforts to strengthen civilian policing and rule of law. At the Tokyo conference in July, a mutual accountability framework was established which established the benchmarks for continuation of international support. Negotiations on the Cooperation Agreement for Partnership and Development (CAPD) were also launched.

1.2. Leading the way in development policy

1.2.1. A more strategic approach: implementing the "Agenda for Change"

The Commission's proposals presented in the communication "Increasing the Impact of EU Development Policy: An Agenda for Change"[8] were endorsed by the Foreign Affairs Council (FAC) on 14 May 2012.

The "Agenda for Change" sets out a more strategic approach to poverty reduction aiming at further increasing the impact of EU development policy. To this end, it proposes a series of key changes in the way EU assistance is delivered. These include, inter alia, a differentiated approach so that grant aid is directed where it is most needed and can have the greatest impact in terms of poverty reduction; concentration on a maximum of three sectors per country; focus on good governance, democracy and human rights, and inclusive and sustainable growth; greater use of innovative financing mechanisms; improved policy coherence and increased coordination and joint actions with Member States (for more details see chapter 1 part 4).

The recommendations of the Agenda for Change have been integrated into the proposals for financial instruments for the period 2014-20, as well as into the new programming instructions to EU Delegations.

In the context of the Development Cooperation Instrument (DCI), the Commission has, among other things, proposed to stop bilateral aid to most upper middle income countries and certain large emerging economies which have sufficient domestic resources to address poverty, while considering new forms of partnership with these countries.

Within the programming exercise initiated in 2012, the Commission and the EEAS has also undertaken to ensure that EU development cooperation at country level concentrates on a maximum of three sectors, drawn from the two overarching priorities of human rights, democracy and good governance and inclusive and sustainable growth.

Moreover, to further strengthen policies in priority areas, the Commission issued specific communications in 2012 on "Social Protection in European Union Development Cooperation", "The Roots of Democracy and Sustainable Development: Europe's Engagement with Civil Society in External Relations" and "The EU Approach to Resilience: Learning from Food Crises".

In 2012, the Commission increased the use of blending, where grant and non-grant resources such as loans and equity are combined to create the right financing-mix for specific projects. The EU established three new blending mechanisms for Asia, the Caribbean and the Pacific. As a result, EU grants of more than EUR 400 million made investment projects in beneficiary countries possible, with a total project volume of approximately EUR 10 billion. The EU Platform for Blending in External Cooperation was launched in December to further improve the performance of blending mechanisms.

The EU and its Member States have also taken steps to improve coordination and to make progress on joint programming (see chapter 1 part 1.4).

Commission services began defining an overall results reporting framework and on reforming monitoring and reporting systems relating to the implementation of projects and programmes. The Commission also organised discussions with Member States’ experts to explore common approaches to reporting results.

The approach to future EU budget support to third countries[9] was endorsed by the FAC on 14 May 2012 and translated into practice (for further details see chapter 4 part 2.2).

1.2.2. Responding to global challenges and supporting long-term reforms

In recent years there has been an increase in the number of natural and human disasters, such as droughts and conflicts in addition to the emergence of long-term challenges that have led to increased food prices. In countries where many people have insufficient access to food these factors have contributed further to the vulnerability of the poorest. The EU has increased its support to developing countries to strengthen their resilience to such shocks, for example, by adapting and enhancing agricultural methods. In this respect, 2012 marked a critical year.

The communication "The EU Approach to Resilience: Learning from Food Security Crises", adopted by the Commission in October 2012, outlined ten critical steps to increase resilience for the world’s most vulnerable people. These ranged from the design of national resilience strategies and disaster prevention/management plans to efficient early-warning systems in disaster-prone countries and innovative approaches to risk management.

The policy builds on the promising results of the EU's resilience-boosting initiatives in the Sahel and the HoA, which formed part of its response to the droughts in these regions. The Alliance Globale pour l'Initiative Résilience (AGIR-Sahel) and Supporting Horn of Africa Resilience (SHARE) seek to break the vicious cycle of drought, hunger and poverty through sustained coordination between humanitarian and development assistance. (See box in section 2.2 for more details on AGIR-Sahel and SHARE). Preparation began in autumn 2012 on a communication to enhance maternal and child nutrition, with a particular focus on reducing both stunting and wasting; adoption is foreseen for March 2013.

EU assistance saves two million lives in Niger

Over a period of four months, EU food security assistance to Niger helped save an estimated two million lives. The assistance, allowing for the purchase of grain and the setting-up of cash-for-work programmes, was exclusively channelled through the national government's food security mechanism and covers the needs of one third of the population. Thanks to prompt and decisive action, a more serious situation was avoided.

A communication on EU Support for Sustainable Change in Transition Societies was adopted in October[10]. It examines what the EU has to offer to help countries in transition to democracy, building on its own experiences in the enlargement process, neighbourhood policy and development cooperation. It also sets out a number of concrete measures to improve the way in which the EU supports these countries so that they can achieve lasting reforms and avoid backsliding.

The European Commission continued to play a key role in international negotiations on the environment and development. Highlights from 2012 include participation in the Rio+20 UN Conference on Sustainable Development in June 2012, the 11th Conference of the Parties (COP11) of the Convention on Biological Diversity (CBD) in Hyderabad in October 2012, and the COP18 of the UN Framework Convention on Climate Change in Doha in December 2012.

At the UN Conference on Sustainable Development (Rio+20) a declaration "The Future We Want" was adopted. It was recognised for the first time that an inclusive green economy is an important tool in achieving sustainable development and reducing poverty. It also acknowledged that urgent action is needed to tackle unsustainable patterns of production and consumption. The possibility emerged to work with a broad range of willing countries to develop policies on the green economy as a common undertaking. It was decided to develop Sustainable Development Goals (SDGs) and options for an effective sustainable development finance strategy. The EU also secured international engagement in areas such as water, oceans, land and ecosystems, food security, energy, sustainable consumption and production (SCP) and social protection.

During the climate change negotiations at COP18 in Doha in December 2012, the EU continued to play a leading role in pushing for new and more ambitious agreements on emission reductions. These will allow global average temperature increases to remain below the two degrees that scientists consider the threshold to avoid "dangerous" and unmanageable consequences. The Doha outcome was a step in the right direction: it agreed to a second commitment period of the Kyoto Protocol and a work plan for reaching a new agreement in 2015 covering all countries (both developed and developing) which will enter into force in 2020. While the global agreement is not yet a reality, fieldwork to address climate change began several years ago and the EU remains an important supporter of the need to mitigate its effects through adaptation and cooperation with its partner countries throughout the world.

At the CBD COP11, parties, including the EU, agreed on the ambitious target of doubling total biodiversity-related international financial resource flows to developing countries by 2015 and then to at least maintain this level until 2020. The EU is the largest contributor of biodiversity-related international finance to developing countries, representing 53 % of total aid for biodiversity. The protection and enhancement of biodiversity and ecosystem services provides significant benefits for development and the green economy, and contributes to the overall aim of eradicating poverty.

Responding to Rio +20: expanding support for transition towards a green economy and green business development

Greening the economy is an imperative if we are to halt the continuous and accelerating degradation of the environment and the planet's natural capital which are the very foundations for economic and human development as we know it. In the face of the numerous global crises (environmental, social, and financial) and increasing poverty and inequality, the green economy model offers a perspective for generating economic growth which is both inclusive and environmentally sustainable.

Advancing the transformation towards a green economy requires a range of support measures with which to carry out change at the national and global level. These include capacity development, technical assistance and financing. The Rio+20 Declaration "The Future We Want" invites stakeholders to support developing countries – particularly the least developed – upon request, to achieve sustainable development, inter alia, through green economy policies. In this, the international donor community, alongside other actors such as financial institutions (including the banking sector) and the business community at large, has a key role to play.

The EU responded to this challenge by extending existing programmes such as Forest Law Enforcement, Governance and Trade (FLEGT) and developing new initiatives and partnerships. These include:

• the SWITCH family of programmes which have been expanded with a new phase of SWITCH Asia as well as new activities in the Mediterranean and Eastern Neighbourhood. These programmes aim to support SCP and the development of a green business sector that generates growth, creates jobs and reduces poverty in a way that is consistent with the principles of sustainable development.

• the UNEP Green Economy Advisory Service[11], which supports governments with initiatives to transform and revitalise their economies, has been extended to the Caribbean region. Additional joint programmes have also been developed with the UNEP supporting policy development and concrete actions in the field of eco-labelling and sustainable public procurement, as well as resource efficiency and eco-innovation in a number of developing countries. Policy development and guidance relating to trade and green economy opportunities have also been developed.

• a second phase of the SEED Initiative[12], a global partnership for sustainable development that aims to support development of social and environmental entrepreneurships, was launched.

• green business development is supported through country programmes, as is the case in Lebanon.

1.2.3. Making a difference: new instruments and aid modalities

The external financial instruments proposed by the Commission on 7 December 2011 provide the tools for more prominent, flexible and effective European external action over the period 2014-20. They pursue the strategic objectives of EU external policy based on the Europe 2020 strategy, which provides a global vision of future EU action in a changing and globalising world. They translate, in operational terms, the priorities of the Agenda for Change and of the new vision for the European Neighbourhood Policy (ENP).

The new instruments will allow the EU to respond to global challenges (such as climate change and hunger), to promote the EU's values and support its interests abroad. They will also increase the impact of EU action to work to eradicate poverty in the world and invest in the long-term prosperity and stability of our Neighbourhood. Furthermore, they will help us to strengthen international security, to take steps to prevent natural or man-made disasters, and to respond more effectively when they occur.

In the midst of a global economic crisis, the EU must direct its resources where they are most needed and where they will have the greatest impact and added value. All instruments have been revised so that they are better adapted to the evolving international context by permitting greater flexibility and reactivity, making them better equipped to face these new challenges. Examples include the Arab Spring with the European Neighbourhood Instrument and promoting EU interests abroad and underpinning strategic relations with emerging economies (such as China, Brazil and India) with the new Partnership Instrument. The new instruments are based on the following:

• a differentiated approach will be used in the DCI with bilateral cooperation benefiting the poorest countries where the EU will continue to deliver long-term programmed assistance focusing on poverty eradication. Allocation will be based on needs, capacities, commitments and potential impact. When it comes to strategic emerging economies, the EU will focus primarily on other forms of partnership and will seek to better promote its own strategic interests.

• strengthened accountability will be applied and the allocation and disbursement of funds linked to the progress made in implementing commitments by the partner countries. Respect and promotion of human rights, democratic values and the rule of law will also underpin EU external action under the new instruments.

• increased flexibility in the allocation of funds will allow a response to urgent needs and to crisis situations with the possibility of using non-programmed amounts. Flexibility is key to rapidly sourcing development money in order to jump-start the recovery and transition process of a country emerging from crisis.

• using resources strategically by blending EU grants with other non-grant resources such as loans and equity will unlock additional public and private financing for investment projects in partner countries. This innovative use of grants is designed to increase the impact of EU external cooperation and development policy.

1.3. Keeping long-term promises 1.3.1. Progress in achieving the MDGs and preparation of the post-MDG framework

Poverty and hunger

According to most recent figures available[13], the world has reached its objective of halving the number of people leaving in extreme poverty ahead of the target fixed in the Millennium Declaration in all geographic regions, including in sub-Saharan Africa.

In 2012 global statistics highlighted that the people going hungry had declined, indicating that 55 million people had improved their food security; however, there remain 870 million people without access to sufficient food. The EU is committed to seeing this number decline further.

EU food facility improves the lives of 59 million

In three years, the EU's EUR 1 billion food facility has improved the lives of over 59 million people in 49 countries and provided indirect support for some 93 million others. Two programmes that helped facilitate these advances are a livestock vaccination programme, which has resulted in the inoculation of over 44.6 million livestock, and a training programme in agricultural production for 1.5 million people.

Fighting undernutrition is vital; in 2012 the EU committed itself to supporting partner countries in reducing the number of children who suffer from stunted growth by at least 7 million by 2025. Commissioner Piebalgs currently serves as a member of the Scaling Up Nutrition (SUN) movement Lead Group, which provides strategic direction for the movement. He also attended the Global Event on Nutrition held in London in August, where he reiterated that the Commission was ready to support partner countries to reach their targets to reduce the number of stunted children. The EU played an active role in May at the G8 Summit where a 'New alliance to improve food security and nutrition ' was launched. The EU also played an important role at the latest G20 to make nutrition a top priority for world leaders.

Too often, the most vulnerable members of society are left behind in the creation of wealth and in sharing the benefits of growth and development. The lack of social protection represents an obstacle to long-term and sustainable development and the extension of basic social protection guarantees remains a major challenge in many countries for the coming years. Subsequent to a broad consultation process, the Commission adopted the first communication on social protection in EU development cooperation[14] in August 2012. It outlines how future EU aid should work to support the development of nationally owned social protection policies and programmes, including social protection floors. Social protection is included in the goals proposed by the High Level Panel on the Post-2015 Agenda and put forward in the Open Working Group on Sustainable Development Goals. Following a request from the Council[15], the Commission is examining how best to integrate social protection in the post-2015 development agenda and to ensuring that social protection is included in policy dialogues with partner countries.

Social protection: increasing opportunity and reducing inequality

A lack of social protection can be a barrier to long-term and sustainable development and contribute to inequality. The EU works to improve employment conditions, support job creation, self-employment and income generating activities, to improve jobs for decent work, and combat child labour.

Some examples of this are in the area of waste collection and recycling where the EU has supported pre-collectors, waste workers, and recyclers in Ho Chi Minh City (Vietnam), Bogota (Colombia), Addis Ababa (Ethiopia) and Antananarivo (Madagascar). This support aims to reinforce workers’ organisational abilities, increase revenue social inclusion, value their profession and give them access to adequate and long-lasting social protection.

Environmental sustainability

The MDG on sustainable access to drinking water was reached five years ahead of the 2015 deadline. The objective of ensuring that 88% of the world's population can benefit from a reliable supply of safe drinking water supply was slightly exceeded[16]. This achievement reflects the concerted effort of the international community, to which the EU made a prominent contribution through financial support delivered through the national and regional indicative programmes, the Water Facility and the MDG initiative.

However, huge disparities continue among regions but also between rural and urban areas. While coverage of improved water supply sources amounts to 90% or more in Latin America and the Caribbean, Northern Africa and large parts of Asia, it is only 61% in sub-Saharan Africa. Worldwide 96% of urban population had accessed to improved water supply services in 2010 against 81% of the rural population. The sanitation MDG still remains off track, with no more than 63% of the world's population having access to improved sanitation against the aim of 75% by 2015. Here again, 44% of rural population has no access to an improved basic sanitation against 8% in urban areas in 2010. Complementary efforts concerning water quality are also to be taken into account in defining targets and policies[17].

The EU is a key player and leads internationally recognised initiatives on environmental sustainability:

· the Global Climate Change Alliance (GCCA): by the end of 2012 over 45 GCCA programmes financed from an envelope of more than EUR 285 million were being run or in preparation in more than 35 countries

· the EU Forest Law Enforcement, Governance and Trade (FLEGT): Ghana, Liberia, CAR, Congo, Cameroon and Indonesia concluded a Voluntary Partnership Agreement (VPA). Interest in FLEGT increased with Guyana, Honduras, Laos and Ivory Coast asking to enter VPA negotiations. Vietnam, Malaysia, Gabon and DRC countries are still in the negotiation process.

· the ACP-EU Water Facility: a call for proposals was launched and 15 projects were selected. Two projects were approved within the Pooling Mechanism.

· the EU MDG Initiative: a call for proposals on sanitation was launched within the Facility. In addition, under the EU MDG Initiative, EUR 266 million was committed in 2012 to contribute to water and sanitation MDGs in 19 ACP countries.

Sustainable energy

Worldwide 1.3 billion people lack electricity to light their homes for studying or to conduct business. It is therefore clear that sustainable development is not possible without sustainable energy. Moreover, nearly 40% of the world's population rely on wood, coal, charcoal, or animal waste to cook their food breathing in toxic smoke that causes lung disease and kills nearly two million people a year, most of them women and children.

During the EU SE4ALL Summit in April President Barroso therefore proposed the ambitious goal of helping developing countries provide access to sustainable energy services to 500 million people by 2030. The Commission committed EUR 400 million to energy-related actions in Sub-Saharan Africa through blending. It is also rolling out a EUR 65 million EU technical assistance facility and more than EUR 75 million from the Intra-ACP envelope will be dedicated to rural electrification projects.

EU supports the construction of a photovoltaic power plant in Burkina Faso, the largest in West Africa

Currently, only 15% of the Burkinabe population have access to electricity and the country still heavily depends on energy imports. The strong reliance on fossil fuels has a negative impact on the environment. Located in Zagtouli, on the outskirts of the capital Ouagadougou, the new power plant will have 96 000 solar panels. It will provide 32 gigawatt hours per year, the equivalent of 6% of the country's current electricity production. This will cover the energy consumption of around 400 000 people. EU support for the power plant amounts to EUR 25 million; the European Investment Bank (EIB) and the French Development Agency (AFD) provide loans of a total of EUR 38 million.

In the framework of the EU Energy Initiative and the Africa-EU Energy Partnership, a stakeholder forum was organised in 2012. It allowed private sector, civil society and research stakeholders in Europe and Africa to explore opportunities and potential synergies.

Education

Good progress has been made in primary school enrolment, with the global average net enrolment ratio reaching 89 % in 2010. Girls are now almost as likely to be enrolled as boys. However, secondary school enrolment is lagging behind at 66 %. Furthermore, progress towards universal primary enrolment has slowed and inequalities in accessing education persist. They are related to extreme poverty, marginalised populations and conflict-affected areas.

In the programming period 2007-13, the EU has supported education and training in 45 countries as a focal sector with a total of EUR 2.8 billion. In the same period, EU higher education programmes were supported with EUR 1.2 billion.

40 000 Somali students gain access to education

Since 2010, the Commission has helped more than 40 000 students in Somalia to gain access to basic, primary and secondary education. With one of the lowest literacy rates in the world - an estimated 80 % of Somalis are considered illiterate - the Commission has focused on raising levels of literacy by building or rehabilitating over 330 classrooms. With 4 000 primary and secondary teachers qualifying and 5 280 trainees enrolling in vocational training thanks to EU funding, the development of skills and promotion of employment looks set to continue.

In the Global Partnership for Education, the Commission focused on reinforcing local education groups and promoting aid effectiveness. Teaching issues were a special focus for the Commission in the International Task Force on Teachers for Education for All. The Commission also reinforced contacts with the Association for the Development of Education in Africa to promote education policy dialogue between donors and African partners. It also played a prominent role in the triennial conference "Critical Skills for Sustainable Development in Africa" in February 2012 in Ouagadougou.

A Memorandum of Understanding between the EU and UNESCO was prepared and signed in 2012.

Gender equality

Girls have benefited most from the increase in child enrolment in primary schools since 2000. Despite the fact that girls generally face greater barriers at the secondary level, on average parity between both genders has almost been attained. However, Africa lags behind with 82 girls per 100 boys enrolled in secondary education. The greatest regional differences appear in higher education with Africa at 62 girls per 100 boys compared to the developing world as a whole where parity has been achieved.

Measured by the extent to which women have equal access to job opportunities, their share is increasing slowly, having risen from 35 % in 1990 to 40 % 20 years later.

Additionally, there has been progress in women’s representation in parliaments, albeit at a slow pace. Female representation in parliaments within the developing world has risen from 12 % to 18 % from 2000-2012 compared to the developed world which saw an increase of 16 % to 23 % in the same period.

A bigger role for women in politics in Egypt

Women's rights represent 25 % of the EU's ongoing support to civil society in Egypt. The EU aims to address the obstacles to women’s full enjoyment of their basic rights. Activities supported include election monitoring, raising awareness of election violations and promoting women's participation in electoral campaigns.

Health

There is global progress towards the health-related MDGs. However, achievements are often unequally distributed in and across countries. Children are significantly less likely to die of disease or malnutrition since the launch of the MDGs in 2000, while global HIV infections continue to decline (with the exception of Eastern Europe) and access to anti-retroviral drugs has increased. There have been big improvements in maternal health and a reduction in maternal deaths, but progress remains slow. There has also been a reduction in adolescent childbearing and an increased use of contraceptives since the launch of the MDGs, albeit at a slower pace. In particular, Sub-Saharan Africa and fragile and post-conflict countries lag behind. In 2012 major programmes implementing the 2011 EUR 1 billion MDG Initiative were set in motion in Ghana, Zambia and Botswana.

Addressing maternal mortality requires strengthening comprehensive healthcare systems, as stated in the 2010 Council conclusions on global health[18]. The EU is delivering on its commitments to aid effectiveness in the health sector by using bilateral programmes to accelerate progress towards achievement of the health-related MDGs.

Improving maternal and child health in South Sudan

The EU is helping to improve maternal and child health in South Sudan, which has indicators that are among the lowest in the world: South Sudan has 19 midwives, yet needs 2 000. By contributing to a pool to deliver basic services, the EU has strengthened the healthcare system and supported county hospitals through comprehensive emergency obstetric care and the building up of human resources.

Globally, the EU supported the International Health Partnership in promoting the harmonisation and alignment of health support to one national health strategy, one health budget and one monitoring framework. The EU has used its influence on the Board of the Global Fund to fight Aids, Malaria and Tuberculosis as well as to introduce a new funding model more aligned with national strategies and plans.

Preparation of a post-2015 framework

Preparation for the UN Special Event to follow up on efforts made towards achieving the MDGs (September 2013) and more generally the post-2015 framework gained momentum throughout 2012 and Commissioner Piebalgs was appointed as a member of the UN Secretary General's High Level Panel on post-2015. At EU level a communication, taking into account the outcome of a public consultation[19], is expected to be adopted in February 2013 setting out the principles for an EU approach to an overarching post-2015 framework bringing together poverty eradication and sustainable development, including the follow-up to the Rio+20 Conference. The approach is expected to be adopted by the Council in June 2013.

1.3.2. Focusing on poverty

The Lisbon Treaty puts fighting poverty at the core of European external and development policies. The EU has already done much to help reduce poverty and in particular to support the achievements of the Millennium Development Goals (MDGs). The EU and its Member States are collectively the largest donor, as reported by the Development Assistance Committee (DAC) of the OECD. Even though the global economic and financial crisis, exacerbated by the food and energy crisis have seriously challenged prospects for poverty reduction, progress has nevertheless been made towards reaching the targets of the MDGs. However, this has been highly uneven among regions, countries and population groups.

In April 2011, no low-income fragile or conflict-affected country had achieved a single MDG and few are expected to meet any of the targets by 2015. According to the World Bank nearly 1.3 billion people in the world remain below the extreme poverty line with an income of USD 1.25 or less a day. Another 2.6 billion live on less than USD 2 a day and more than 870 million people do not have enough to eat.

Progress in reducing poverty

All EU partners in Eastern Europe and the Caucasus covered by the European Neighbourhood and Partnership Instrument (ENPI) are now classified as Middle–Income Countries (MICs). While poverty in the region has been reduced, social inequality and exclusion are still increasing at country and regional levels. Regional needs are significant. Although the Republic of Moldova[20] has been reclassified as a low–middle income country, it remains Europe’s poorest country.

Mediterranean countries covered by the ENPI also have to cope with poverty (all of them, apart from Israel and Palestine, belong to the MIC category). The Arab Spring offers an opportunity for the southern Neighbourhood to carry out reforms needed for better governance and inclusive and sustainable growth for progress on poverty reduction.

EU assistance through the ENPI provides major support to reduce poverty. Apart from Syria, the most difficult social situation remains that of Palestine where, despite humanitarian assistance, more than 30 % of the Palestinian population still live in poverty.

Iraq on the other hand is trying to emerge from the peak of violence in recent history. More than 23% of Iraq’s population is still below the poverty line, which affects mostly vulnerable parts of the society (such as widows, internally displaced persons (IDPs) and orphans). In parallel, Iraq is experiencing a constant GDP growth in the last couple of years (almost 10 % in 2011). This is mostly due to the increase of crude oil exports as well as subsequent investments.

Sub-Saharan Africa has managed to cope with the crisis better than expected and its growth rates are above pre-crisis levels. As a result, many African countries have made progress towards the MDGs. For example, four countries: Cape Verde, Ethiopia and Ghana are projected to achieve most of the MDGs, if not by 2015, then soon thereafter. However, serious challenges remain. About half of the population still lives on USD 1.25 a day, and development progress is neither reaching those most in need nor vulnerable groups. Weak governance is another challenge.

Despite a significant growth rate of the Asian economies, poverty is still widespread on the continent. Afghanistan, Bangladesh, Cambodia, Laos, Myanmar/Burma, Nepal, North Korea, Pakistan, as well as India, face challenges in terms of prosperity of their population and the disparities existing between regions and the rural and urban areas. EU cooperation through the DCI focuses on capacity building, social infrastructures, energy efficiency, land management, climate change, food security, environmental protection and trade integration, all of which have spill–over effects on poverty alleviation strategies at regional and country level.

The Pacific region faces the highest levels of vulnerability, with very low coping capacity and resilience to shocks. Climate change in particular is one of the greatest threats to the region and challenges its ability to achieve the MDGs. The 2012 EU communication 'Towards a renewed developed partnership with the Pacific region'[21] stressed the need for synergy between development and climate change assistance, improved management of funding for mitigation and adaptation to climate change as well as the promotion of low carbon development. Consequently, the EU has increased additional climate change funds for the Pacific in 2012.

Central Asian transition countries saw growth pick up in 2010 after the crisis caused weaker markets for commodity exports and lost remittances from citizens working abroad. But overall in the region growth rates fell, poverty levels rose and the urban/rural divide widened. To help meet these challenges, EU support focuses on raising living standards, developing the social sector and providing a social safety net. It also seeks to improve the rule of law and public governance.

Progress in economic and social reform during the 1990s and early 2000s contributed to prolonged economic growth for Latin America and Caribbean and poverty levels fell significantly. For example, more than 60 million people were lifted out of moderate poverty between 2002 and 2012. However, 167 million people, about 30% of the Latin American and the Caribbean population, still lives in poverty and income inequality remains among the most acute in the world. Haiti is the poorest country in the region and its reconstruction and poverty challenges are being supported through a revised country strategy which includes joint programming with EU Member States. For Latin America and the Caribbean, EU programmes financed out of the DCI and EDF support the fight against poverty by promoting social cohesion, equality, promoting sustainable growth and backing regional integration. The EU policy dialogue with the region has also been broadened to include inter alia economic competitiveness, trade, migration, environment, energy, climate change, governance, research and technology and sustain­able development.

1.3.3. Strengthening human rights and good governance

In 2012, the EU continued to use its range of external instruments to promote and protect human rights and good governance, as well as to combat gender inequality in line with both the 2011 joint communication "Human rights and democracy at the heart of EU external action – towards a more effective approach"[22], and the "Agenda for Change". Furthermore, the proposals presented in December on the EU financial instruments (MFF package) show to what extent human rights and democracy are no longer dealt with as a cross-cutting issue, very often tackled only by the thematic instruments. They have become issues in their own right which, through a sector-wide approach, avoid being considered as mere ‘add-ons’ but become a foundation for more coherent and effective programming. In addition, support to civil society worldwide has been strengthened through the application of the European Instrument of Democracy and Human Rights and the establishment of a new Neighbourhood Civil Society Facility as an integral part of the EU response to the Arab Spring.

Over 130 strategies taking into account the views of civil society were finalised worldwide in 2011. During 2012, the EU continued this process, developing human rights strategies for almost 160 countries. The EU remained active in multilateral fora at the UN, the Council of Europe (CoE) and the Organisation for Security and Cooperation in Europe (OSCE) in order to set the standards of human rights and to promote their universal application.

In 2012, the EU continued to vigorously support electoral processes around the world by sending EOMs and Electoral Expert Missions (EEMs) as well as providing electoral assistance and support to domestic observers. EOMs were sent to Senegal, Algeria, Timor-Leste and Sierra Leone. EOMs in West Africa facilitated successful presidential elections in Senegal and Sierra Leone, in difficult conditions which the missions helped resolve. An Election Assessment Team (EAT) was sent to Libya while EEMs were also deployed in Egypt, Yemen, El Salvador, Guinea Bissau, Senegal, Mexico, Angola and Ghana. In December 2012, the EU deployed a first Electoral Follow-Up Mission to Malawi with the task of studying the progress made in electoral reforms and contributing to the preparations of the 2014 elections.

At the beginning of 2012, the EU received implementation reports from nine Delegations on their work as pilots on democracy support in line with the Council conclusions of November 2009 (Benin, Ghana, Bolivia, Lebanon, Mongolia, Kyrgyzstan, Indonesia, Maldives, and the Solomon Islands). Work in support of democracy was incorporated into the Strategic Framework and Action Plan adopted in June and a consolidated Joint Report on implementation was adopted in October and presented to the Member States. The continuation of this work is intended to end the first generation of pilots and the lessons learned will feed into the launch of a second. In September a joint seminar between the EEAS and Commission services celebrating the International Day of Democracy took place. The EEAS also participated in a the CoE panel at the World Forum for Democracy in October

1.3.4. Mainstreaming of cross-cutting issues

Gender

The mainstreaming of gender equality and women’s rights is a legal obligation in the EU. It is a challenging task which requires a systematic approach to ensure that staff at all levels have the competences and know-how necessary to ensure that the gender dimension is integrated into sector programmes ranging from health and education to private sector development, food security and infrastructure. To achieve this, various tools and training modules have been developed and gender advisory services have been made available for staff in Delegations and at headquarters. The EU Plan of Action on Gender Equality and Women’s Empowerment in Development 2010-15 has mainstreaming of gender as a principal objective. The second report on the implementation of the plan in 2012 shows that further progress has been made in more partner countries and that an increasing number of sectors are covered. Thus, the EU is now using gender-sensitive indicators in its support of sectors such as water and sanitation, health, education, food security and rural development in 31 partner countries. The issue of gender equality is being raised more frequently in political dialogue with partner countries and in sector programme policy dialogues. Furthermore, preparation is under way in EU Delegations to further strengthen gender equality in the EU's cooperation in the next programming period 2014-20.

Increased use of gender statistics and progress in reducing inequalities is being reported. This creates conditions for better accountability in order to demonstrate that women are equally benefiting from EU-funded development activities. An example of this is the EU’s support to “engender” private sector development in Senegal where the use of these indicators has resulted in more than half of the supported businesses being run by women.

Environment and climate change

Since Rio+20, the thinking on the green economy has developed rapidly. The Commission aims at linking the mainstreaming of environment and climate change in development cooperation with this wider concept of the green economy. A draft document exploring this approach is expected in 2013.

The Commission remains committed to working with Member States to develop an EU-wide strategy to integrate environment and climate change in development cooperation. The need for further progress in integrating the three strands of sustainable development was underlined in the outcome document of the Rio+20 Conference, "The Future We Want".

Regional seminars for EU Delegations were organised to train staff on greening development. In 2012, a one-day course was introduced in recognition of the rising importance of the green economy. Additional workshops targeting the Overseas Countries and Territories, the Caribbean and Asia were delivered in the context of the Global Climate Change Alliance (GCCA). With these, the Commission has trained over 200 senior officials. The courses targeted Ministries of Finance, Planning and Environment in an effort to catalyse the mainstreaming of climate issues in the budgeting process. There is now a strong demand to repeat the workshops at regional and national levels.

Culture

Culture continued to be supported as a cross-cutting dimension of social inclusion, freedom of expression and promotion of diversity. Specifically, in 2012, calls for proposals were launched at regional level (Neighbourhood East, ACP countries) and projects were launched at country level (such as Mauritania, Tanzania, Ethiopia and Algeria).

1.3.5. Cooperation with non-state actors and local authorities

The roots of democracy and sustainable development: a new policy for the EU's engagement with civil society

In September 2012, the communication "The Roots of Democracy and Sustainable Development: Europe's Engagement with Civil Society in External Relations"[23] was adopted. The communication, which was endorsed by the Council in October[24], proposes an enhanced and more strategic approach to the EU's engagement with local civil society organisations (CSOs) in developing, Neighbourhood and enlargement countries. The EU recognises the importance of a dynamic, pluralistic and empowered civil society and of constructive relations between states and CSOs.

The new policy responds to contrasting developments, ranging from the international recognition of CSOs as key development actors to severely shrinking space for CSOs to operate in many countries. It also builds on the results of the Structured Dialogue on the Involvement of Civil Society and Local Authorities (LAs) in EU Development Cooperation (2010-11) as well as the results of an online stakeholder consultation on the subject.

The focus of the new policy is on civil society's contribution to building stronger democratic processes and systems of accountability and to achieving better development outcomes. It puts forward three priorities:

· enhancing efforts to promote a conducive environment for CSOs in partner countries.

· promoting meaningful and structured participation of CSOs in the domestic policies of partner countries, the EU programming cycle and in international processes.

· increasing the capacity of local CSOs to perform their roles as independent development actors more effectively.

Dialogue process

The Policy Forum on Development, put forward by the Commission in 2012, will continue the dialogue with CSOs and LAs. The forum will organise two meetings per year in Brussels where participants will share best practice and engage with the Commission on EU development policies and programmes. An interim phase of the Policy Forum was launched in 2012, providing time for consultation and discussion with the stakeholders of the Structured Dialogue on the future set-up. Two interim meetings took place in Brussels in May and October, bringing together approximately 50 CSOs and LAs from Africa, Asia, Latin America, the European Neighbourhood and Europe, as well as a number of EU Institutions and the Member States. Consultations and debates focused, among other issues, on the post-Busan Agenda for Aid Effectiveness, the communication "Civil Society Organisations and Local Authorities in Development", the post-2015 development agenda and the new CSO-LA Strategy (2014-20).

Local authorities

The Commission has continued to cooperate closely with LAs, particularly in order to redefine and reinforce its policy within the new global framework for EU development cooperation that was launched in 2011 with the Agenda for Change. The Issue Paper "Local Authorities on Development" was prepared by the Commission services in the first half of 2012 and was widely distributed later in 2012 in order to consult with relevant stakeholders at four levels:

· the country level, through the EU Delegations

· the regional level, through seminars held in collaboration with the European Platform of Local and Regional Authorities for Development (Platforma)

· the European level, through info points with the European Parliament, the Committee of the Regions and experts from the EU and Member States and the Policy Forum on Development (CSOs and LAs)

· the international level, through spontaneous or requested contributions from UN bodies and other development partners, including United Cities and Local Governments (the global association of LAs).

The results of the consultation will inform the new Commission communication "Local Authorities in Development", to be adopted in the first half of 2013.

As a follow-up to the Structured Dialogue (SD), the Commission organised a seminar on dialogue with LAs from the Neighbourhood South Region in Tunis in November 2012. The EU Delegation in Lebanon organised a SD seminar at the national level in March 2012.

In cooperation with the Committee of the Regions the Commission started preparing the third “Assizes of Decentralised Cooperation” in 2012. These are scheduled to take place in Brussels in April 2013. Launched in 2009, the Assizes allow LA representatives from the EU and partner countries to conduct political dialogue on development cooperation with European Institutions as well as to exchange experiences on decentralised cooperation.

The Commission has thus continued strengthening its strategic relationship with LAs at the political level while continuing to co-finance projects proposed by them.

1.3.6. Financing for development

In 2012, the Commission presented its 10th annual Accountability Report on Financing for Development[25], which covered all aspects of development finance as framed by the Monterrey Consensus and the Doha Declaration.[26] It showed that mobilising more development financing from all avail­able sources was a necessary, but not sufficient, condition to fight poverty and foster development. It also showed that the EU's contribution to supporting developing countries went far beyond its Official Development Assistance (ODA).

The EU still has some way to go to reach its 0.7% ODA/GNI collective target by 2015. EU collective ODA amounted to a total of EUR 55.2 billion in 2012, corresponding to 0.43 % of combined GNI.[27] The total ODA of the EU Member States alone that year stood at EUR 50.6 billion, or 0.39% of combined GNI, showing a decrease for the second consecutive year. However, the EU collectively remains the world's largest donor. Furthermore, in 2012, the EU delivered on its commitments on fast-track climate finance.

In light of international developments in 2012 (Rio+20[28], the pledge of developed countries to double resources for biodiversity by 2015[29], climate finance negotiations[30], the post-2015/MDG discussions), the Council has invited the Commission to address issues of financing and other means of implementing global policy objectives through a comprehensive and integrated approach.[31] An upcoming Commission communication as well as the accompanying 2013 Accountability Report will elaborate on initial elements for a common and all-embracing EU approach to financing development and other global policy objectives beyond 2015.

Table 1: ODA table with preliminary 2012 data and estimates 2013-2015[32]

Table 2: 2012 ODA levels and 2015 individual targets of the 27 EU Member States

Table 3: Global comparison (disbursements 2012)

1.3.7. The role of the private sector

The importance of private sector development for growth is widely recognised. In the first place, the private sector creates jobs and income, which are the best insurance against extreme poverty. In the second, the sector also provides goods and services to the poor, such as food, telecommunications and financial services. Some businesses provide very specific products and services such as microfinance, micro-insurance or generic medicines. A dynamic private sector can therefore be a source of innovation to meet the specific needs of the poor. Furthermore, the private sector generates tax revenue which enables public authorities in partner countries to provide basic infrastructure, create a business enabling environment and to provide social safety nets to the poorest. Lastly, a stronger and more diversified private sector can help to strengthen civil society by empowering marginalised groups, generating income and offering wider access to education and health services. Overall, private sector development is one of the most effective ways to achieve the objectives of sustainable growth and poverty reduction.

Since 2003[33] EU support for private sector development has mainly focused on creating an enabling environment for small, medium and large companies through a wide range of interventions. These include support to improve the business environment, strengthen specific policies (such as trade, innovation, competitiveness and access to finance - including microfinance) and to build capacities of business intermediary organisations such as chambers of commerce and business development service providers.

Total EU assistance in the area of Private Sector Development reached EUR 2.4 billion in the period 2004-10. This roughly amounts to EUR 350 million per year, or 3 % of EU assistance in 2010. Out of the total of EUR 2.4 billion, EUR 0.4 billion has been channelled as sector budget support.

The importance of improving the business environment, promoting a competitive local private sector and improving access to business and financial services was reaffirmed in the “Agenda for Change” in 2011[34]. In addition, it acknowledges that a more active engagement with the private sector is not limited to tapping the potential of businesses to stimulate and sustain growth, and improve people's lives, but also to leverage additional private funding for development assistance. It therefore emphasises the importance of developing new ways of engaging with the private sector, notably to leverage its activity and resources to deliver public goods and to extend the scope and scale of the EU regional blending facilities to further leverage financial resources for development.

The Commission has extended the EU regional blending facilities worldwide by establishing the Pacific and Caribbean investment facilities in early 2012[35], launching a comprehensive study on engaging the private sector in development and extending the blending activities of the EU in December 2012. The study will identify, describe and compare existing Commission and Member States' blending initiatives and explore further blending opportunities. It also targets those EU initiatives aiming at private sector development, private-public dialogue and the promotion of development partnerships with the private sector and public-private partnerships for the delivery of public goods. The study will also present options and recommendations on the setting up and implementation of private sector windows within these facilities. Results of the study are expected in 2013.

1.4. Better and more effective aid 1.4.1. Aid effectiveness and joint programming

The Busan 4th High Level Forum on Aid Effectiveness in 2011 mandated the Working Party on Aid Effectiveness to finalise the working arrangements of the Global Partnership for Effective Development Cooperation. The Commission represented the EU in the Post-Busan Interim Group which was formed in early 2012 to prepare the final proposals. The last meeting of the Working Party on Aid Effectiveness in Paris endorsed the monitoring framework and the mandate of the Global Partnership. This included the formation of a steering committee composed of three co-chairs and 15 steering committee members of which the Commission, as representative of the EU, is a member. The first meeting took place in December 2012.

The following priority work areas for the partnership were defined by the Steering Committee:

• changes on the ground since Busan

• domestic resource mobilisation

• private sector

• knowledge sharing

• inclusiveness.

The overriding idea is for the Global Partnership to contribute to the post-2015 development framework paying particular attention to the above areas. Specific deliverables on these areas are to be defined.

Commitments to implement joint programming and the EU Transparency Guarantee were two key EU deliverables at Busan (see chapter 4.2). As a follow-up to Busan, the EU also reviewed its plans to further untie its aid.

In January 2012, the EU and Member States jointly asked their embassies and Delegations in 11 candidate partner countries to assess the feasibility of joint programming. Joint programming was taken forward in six of the 11 countries canvassed, namely Ethiopia, Ghana, Guatemala, Laos, Mali and Rwanda. Joint programming in Haiti and South Sudan had already started as part of an earlier process.

In Guatemala and Laos draft joint programming documents were received in December 2012, responding to national development plans; discussions with Member States on the ground are expected to continue into 2013 to "fine tune" these documents. In Ghana the joint programming process is built on the Busan-inspired Compact that had already been agreed by the government and most donors. It includes an analysis of the strategic direction of the development of the country and ways to implement the aid relationship. The EU and Member States will translate this into an operational division of labour. In addition, the EU and Member States will prepare a Joint Framework Document, encompassing the wider EU-Ghana relationship.

Joint programming in Ethiopia will build on the existing EU (plus Norway) Joint Cooperation Strategy of 2011 while in Rwanda an advanced joint programming document - fully synchronised with the new national development cycle of the government - is expected by May 2013. It builds on the existing and relatively well advanced division of labour process led by the Rwandan government itself. In Mali joint programming has been put on hold due to the current political instability but will be reviewed in 2013. In Haiti elements of joint programming have been implemented. In South Sudan joint programming agreed in 2011 is currently being implemented and a revised joint programming document is foreseen for 2014.

Lessons have been learnt from the countries in the first wave of joint programming. It is clear that joint programming processes are most effective when driven at the partner country level and where they have led to local solutions adapted to specific circumstances. Ownership and, where possible, leadership (as in the case of Rwanda) by partner countries is important. In Rwanda and Ethiopia, non-EU actors are taking part. While in most cases only EU donors have been involved so far, although it is important to remain open to other committed non-EU actors. Above all, experience confirms that synchronisation with partner countries' planning cycles is crucial.

Following discussion with Member States, and information received from EU Delegations, a list of additional partner countries with the potential for joint programming was drawn up. In December 2012, EU Heads of Mission in these countries were asked to assess and report on their feasibility.

1.4.2. Cooperation with the donor community

OECD

Close cooperation with the Organisation for Economic Cooperation and Development (OECD) on develop­ment issues continued in 2012 at all levels. Throughout the year, the Commission actively participated in the work of the OECD Development Assistance Committee (DAC), as the EU is a full member.

The Commission contributed to discussions at senior and ministerial level covering the future global development agenda, including the post-2015 development goals, the Global Partnership for Effective Development Cooperation and external financing for development. Additionally, it helped to define an OECD Strategy on Development (adopted in May 2012) and to promote more active involvement of emerging donors in the OECD's work. Commissioner Piebalgs participated in the OECD Global Forum on Development and co-chaired a high-level event organised by the OECD as part of the 50th Anniversary of its Development Centre.

In 2012, the DAC examined the EU's development cooperation as part of the Peer Review exercise. The final report, published in April, recognised the EU's role as a major global player in development because of its size, geographical coverage and the partnership dimension of its aid programmes. The report gave credit to many of the EU’s strengths and acknowledged that progress had been made in making EU aid more effective since the last peer review in 2007.

Bilateral relations with traditional donors and emerging economies

As part of the broader EU-US strategic dialogue, the Commission initiated regular consultations with its US counterparts under the EU-US development dialogue established in 2009 to reinforce cooperation on the ground and at policy level. In 2012 this process helped raise global political awareness as regards food security and resilience and led to better coordination of aid effectiveness in the post-Busan context. Issues related to "security and development" have become part of the dialogue agenda and are now regularly discussed by both sides. Dialogue on development related issues continued throughout 2012 with two other countries, Japan and South Korea.

Emerging economies play an increasing role in development and the Commission is therefore looking to engage with these new players on global issues and on sharing lessons learned. For example, in 2012 the EU and Brazil continued to give importance to the role of triangular cooperation as one of the areas of the strategic partnership.

1.4.3. Cooperation with international organisations

United Nations

During the course of 2012 the Commission was involved in different UN-related activities with an impact on development. It participated in the main UN conferences, contributed to the debates in the UN General Assembly and the UN Economic and Social Committee (ECOSOC), and took part in the Development Cooperation Forum (DCF). It was also involved in major initiatives taken by the UN Secretary-General in the field of development, such as the SE4ALL initiative, the High Level Panel on the post-2015 Development Agenda, the Scaling Up Nutrition Movement and the Education for All Initiative.

A key event in this respect was the UN Conference on Sustainable Development (Rio+20) which will have a significant impact on the future of our development work. The Rio+20 Declaration "The Future We Want" includes commitments in a number of thematic and cross-cutting issues e.g. on the development of an inclusive green economy, processes for the establishment of Sustainable Development Goals and of a High Level Political Forum as well as on the financing of sustainable development. In 2012 the Commission started working on the follow-up to Rio+20. Ensuring coherence and coordination between the Rio+20 follow-up and the post-2015 development framework is of great importance and should lead to these two processes merging.

An equally important event was the XIII United Nations Conference for Trade and Development (UNCTAD XIII). The Doha Mandate (the outcome conference document) reaffirmed UNCTAD as the UN focal point for the integrated treatment of trade and development, as well as interrelated issues. In light of changes in the economic landscape, the EU emphasised the need to have suitable policies. While many developing countries have been integrating into the world economy, others such as the LDCs continue to lag behind and need to be addressed.

The meetings of the UN General Assembly and the UN ECOSOC triggered important debates on development issues and a series of Resolutions and Ministerial Declarations were adopted shaping the future work of the UN on development matters. Among other issues, the DCF discussed the future of development cooperation in the context of a changed global environment, new financing tools for development cooperation and the links with sustainable development in a post-Rio+20 context.

Working in partnership with the UN system and ensuring a fruitful cooperation with its agencies, funds and programmes (UN AFPS) remained an important objective for the Commission in 2012. In 2012 the Commission signed three Memoranda of Understanding (MoU) with UNWOMEN, UNESCO (both of which were co-signed with the EEAS) and the International Fund for Agricultural Development (IFAD) in order to give more substance to its Strategic Partnership Agreements with UN entities. These MoUs are the legal basis of the Strategic Partnership Agreements and represent the formal commitment of the co-signatory institutions to continue their cooperation in areas of common interest.

Cooperation with the United Nations Development Programme (UNDP) and the United Nations Industrial Development Organisation (UNIDO) was discussed at the highest level. The EU-UNDP strategic partnership was reviewed and both sides reaffirmed their interest in further developing cooperation in areas of common interest and working together towards building solid foundations for peace and development and promoting the MDGs and sustainable development. Cooperation with UNIDO continues to produce tangible results by stimulating economic diversification and competitiveness and both parties have agreed to foster this cooperation.

G20 and G8

The 2012 Mexican presidency of the G20 concentrated on food security and infrastructure and on delivering on the 2010 Seoul Multi-Year Action Plan on Development commitments. The Commission was particularly active in the context of the trade pillar of the action plan and supported Mexico's proposals to add inclusive green growth to the G20 development agenda. The green growth agenda is designed to help structurally transform economies into being climate-friendly over the medium term, and especially to help build the capacity of developing countries to design and implement their own green growth policies and strategies. The Commission pressed hard for action on the critical issue of fossil fuel subsidy reform. It continued to express strong support for the representation of groups such as the AU, both at summits and at other preparatory meetings wherever practical.

The Commission continued to be active in the development related work of the G8 during 2012, where the main focus was on agriculture and food security with the launch of a 'New Alliance to improve food security and nutrition'. The EU played an active role with other G8 leaders to found a partnership between partner governments in Africa, G8 countries and the private sector to lift 50 million people out of poverty in the next ten years by supporting agricultural development. As is now the custom in the G8, much effort was put into the Commission's contribution to the G8 Accountability Report. The 2012 report concentrated on food security, markets and trade and health. Moving towards 2015, the G8 is concentrating its development efforts on delivering on pledges to support achievement of the MDGs. The G8's focus is on key areas such as maternal and child health, where in 2010 Presidents Barroso and Van Rompuy made an additional EU pledge of EUR 50 million for the G8 Maternal and Child Health Initiative. Collectively, G8 members use the accountability process and reports to monitor these commitments. The G8 also continued to deliver on the Deauville partnership[36] in support of the Arab Spring countries.

International Financing Institutions

The Commission’s initiative in 2011 to create a Taskforce for an enhanced dialogue with international financing institutions (TF) was followed up successfully in 2012 through intensified Commission engagement with the International Monetary Fund, World Bank Group, African Development Bank, Asian Development Bank and Inter-American Development Bank (IMF, WBG, AfDB, AsDB and IDB).

Based on a set of converging development policy priorities, the Commission initiated high-level development policy exchanges and promoted stronger partnerships. With IMF this covered public finance management (PFM), vulnerability and shock absorption mechanisms, fragility and capacity building. Work with WBG and AfDB on Africa included, for example, budget support in fragile contexts, sustainable energy for all and food and nutrition security. Exchanges with IDB were on budget support, citizen security and regional initiatives/blending in Latin America and Caribbean. The Commission also engaged in various contacts between EuropeAid and the AsDB, on climate change in cities, on regional economic outlook, and on regional integration.

Commissioner Piebalgs addressed the 85th and 86th WB/IMF Development Committee at its Spring meeting in April (Washington) and the Annual meeting in October (Tokyo).

1.4.4. Coherence between development and other policies

The EU is a major global actor. Its policies can therefore have a strong impact, both positive and negative, on developing countries. The Lisbon Treaty requires the EU to take into account the objectives of development cooperation in all its policies. Not only does this mean making efforts to avoid negative impacts by identifying the most damaging incoherencies and correcting them where possible, but also looking for synergies between the objectives of EU policies generally and EU development objectives. This principle is referred to as Policy Coherence for Development (PCD)[37]. The ambition is to improve EU policy so that it provides benefits for both the EU and developing countries.

The work programme on policy coherence for development for the period 2010–13 issued by the Commission[38] serves as the guiding document for promoting PCD across EU policies. It covers five broad challenges:

trade and finance food security climate change migration security

For each of these issues, the Commission promotes discussion between non-development policy experts and development experts.

In order to inform policy making, the Commission also conducts and actively supports progress on measuring development impacts of EU policies, most often on a case-by-case basis. For example, in 2012, a study was launched to assess the impacts of biofuel production in developing countries from the point of view of PCD. It will be concluded in February 2013.

In 2012, the Commission focused on the follow-up to the 2011 publication of the third biennial "whole-of-the-EU" PCD report[39]. This mainly covered the dissemination of the report and the Commission's participation in discussions with the Council and the European Parliament which led to the adoption of Council Conclusions on Policy Coherence for Development[40] on 14th May 2012 and, on 25th October 2012, to the adoption by the European Parliament of a resolution on the EU report on policy coherence for development (2011)[41]. This follow-up process has been important to ensure coherence and shared ownership of as well as commitment to the PCD among all EU institutions and EU Member States.

The follow-up also included further public information and communication efforts, with the Commission participating in various PCD-related conferences and seminars in 2012, particularly on food security, agriculture and trade. To raise further awareness and promote good practice, the Commission has developed a training course on PCD and plans to conduct more sessions with both Commission and EEAS staff in 2013.

2012 has also been the year in which more systematic cooperation with the EEAS on PCD issues was established.

Cooperation between researchers in Europe and developing countries continued to be supported through the Seventh Framework Programme (FP7). Since 2007 it has provided EUR 440 million to researchers in developing countries to enable them to collaborate in projects with their European counterparts. The Commission also adopted the communication "Enhancing and Focusing EU International Cooperation in Research and Innovation: A Strategic Approach"[42]. One priority will be on research and innovation targeting global challenges in health, food security, renewable energy and climate change which greatly affect developing countries.

Information and communication technologies (ICTs) can contribute significantly to poverty reduction and the achievement of the MDGs. EU support for ICTs includes the project ‘ACP-Information And Communication Technologies (@CP-ICT) Programme’, aiming to support ACP governments and institutions in designing, implementing, monitoring and evaluating their ICT national, regional and continental policies towards sustainable development. It also includes AfricaConnect, a project aiming at developing a regional high- speed Internet network in Southern and Eastern Africa, connecting National Research and Education Networks (NRENs) to each other and to GÉANT (European high-speed backbone network for research and education), in order to provide the region with a gateway to global research collaboration. GÉANT is interconnected by EU funding with southern Mediterranean partner countries (through EUMEDCONNECT3), Latin America (through ALICE2 with RedCLARA-the Latin American Research and Education Network), Asia (through TEIN4 and CAREN) and the Caribbean (through C@ribnet)[43].

1.5. Outlook 2013

In 2013, the Commission will advance with the implementation of the Agenda for Change which will continue to inform the programming process for the 2014-20 Multiannual Financial Framework (MFF). While the differentiation will only take effect upon the entry into force of the new financing instruments, in 2013 the Commission will work towards ensuring that the transition to new partnerships is not disruptive. It will pursue the implementation of programmes already committed under the current MFF and focus remaining commitments and on-going operations on ensuring their long-term sustainability.

Negotiations with the European Parliament and the Council on the MFF 2014-20 will continue, with a view of reaching an inter-institutional agreement leading to the adoption of the financial instruments’ regulations by 2013.

In promoting Policy Coherence for Development (PCD) in EU policymaking, the Commission will prepare the fourth edition of the Biennial EU Report on Policy Coherence for Development that is scheduled for publication in 2013.

Post-2015

The year 2013 will greatly contribute to the shaping of discussions on the post-2015 framework and the EU intends to be actively involved in this process.

At UN level, a UN special event on reviewing the progress on the MDGs is scheduled for autumn 2013. In parallel, the process started to elaborate Sustainable Development Goals (SDGs) as agreed at the UN Conference on Sustainable Development in Rio, initiated in 2012, is likely to yield first insights in the second half of 2013.

In addition, the UN High-level Panel on the Future of Development, of which European Commissioner for development Andris Piebalgs is a member, is expected to submit its final report at the end of May 2013.

At the EU level, the Commission will adopt the communication "A Decent Life for All: Ending Poverty in Giving the World a Sustainable Future" in February 2013 which will propose the key principles for an EU approach to the post-2015 process.

Council conclusions on this document, expected to be adopted in June 2013, should reinforce the common EU approach to the post-2015 discussions.

The European Report on Development 2013 “Post 2015: Global Action for an Inclusive and Sustainable Future” is funded by the Commission and seven EU Member States. It will touch on the core issues related to the future of development policy beyond 2015 and will be presented in Brussels in April 2013.

The issue of a post-2015 development framework is planned to also be the central theme of the European Development Days in 2013.

2. Chapter 2 - Implementation: geographic overview

Introduction

This chapter presents the EU's external assistance in the main geographic regions. The geographic instruments covered here are the European Neighbourhood and Partnership Instrument (ENPI), the Development Cooperation Instrument (DCI) and the European Development Fund (EDF). The EDF is the main source of financing for EU assistance to Sub-Saharan Africa (except South Africa), the Caribbean and the Pacific regions (ACP). The EDF is separate from the EU budget, which finances external assistance to other geographic areas and the thematic aid programmes.

This report does not cover the Common Foreign and Security Policy (CFSP)[44] or the current Instrument for Pre-Accession Assistance (IPA), which is covered by a separate report[45]. A short section of this report is dedicated to humanitarian assistance[46].

While some figures and data can be found throughout this chapter, detailed financial information can be found in Chapter 5, Financial Annex.

2.1. European Neighbourhood and the Middle East 2.1.1. European Neighbourhood & Russia

Introduction

Mutual accountability and a shared commitment to human rights, democracy and the rule of law are at the core of the renewed European Neighbourhood Policy (ENP)[47]. In line with the incentive-based approach, this involves a high level of differentiation and gives each partner country scope to develop its relationship with the EU according to its aspirations, needs and capacities. Closer economic integration and stronger political co-operation on governance reforms, security and conflict resolution - including joint initiatives in international fora on issues of common interest are key aspects of the ENP.

Above all, the ENP seeks to support 'deep and sustainable democracy' and to form partnerships by: intensifying political and security cooperation; supporting inclusive and sustainable economic and social development; creating growth and jobs; strengthening trade ties, including offering gradual economic integration in the EU single market; improving sector cooperation; promoting further mobility and enhancing regional partnerships.

To implement this new policy, substantial - partly additional - funding for the Neighbourhood for the period 2011-13 was earmarked. In 2012, the umbrella programmes for providing additional support for the Southern and Eastern Neighbourhoods (SPRING and EaPIC respectively) were consolidated and several allocations under these programmes have been made. Country allocations were announced to three countries in the Eastern Neighbourhood (Republic of Moldova, Georgia and Armenia) for a total amount of EUR 65 million. In the Southern Neighbourhood, allocations under the SPRING programme were made inter alia to Tunisia, Jordan and Morocco.

The renewed ENP and its key principles are is also reflected in the Commission's proposal for the new European Neighbourhood Instrument (ENI), part of the overall proposal on the 2014-20 Multiannual Financial Framework (MFF). Negotiation of the new ENI proceeded well and had entered trilateral discussions with the Council and the European Parliament at the end of 2012.

The Southern Neighbourhood and the Arab Spring

Throughout 2012, the EU implemented its response to the Arab Spring in accordance with the two joint Commission/HR/VP communications issued in 2011[48]. These communications set out an incentive-based approach (the so-called “more for more” principle) designed to support partners who deliver on reforms and build “deep and sustainable democracy”.

The EU issued several political condemnations of the repression in Syria and applied a set of measures including economic sanctions, trade embargoes, asset freezes and visa bans. The EU provided humanitarian assistance to refugees from Syria.

Following the events of the Arab Spring, President Barroso, HR/VP Ashton and Commissioner Füle regularly visited the region, among other things to convey the EU's political commitment to the Syrian people and to all countries engaged in the democratisation process. At the 5+5 Summit in October[49], President Barroso, accompanied by Commissioner Füle, also met with the leaders of the Maghreb. EU task forces meetings organised by the EU Special Representative for the Southern Mediterranean region (EUSR) with Tunisia, Jordan and Egypt have enhanced EU engagement in a tailored and differentiated way by mobilising all of the EU's assets, to catalyse the public and private sectors.

Support for elections was a key focus of 2012 and the EU deployed full observation missions to Tunisia, Jordan, and Algeria and an Election Assessment Team (EAT) was sent to Libya. The EU provided technical assistance to help the authorities organise elections in Tunisia, Libya, Egypt and Morocco and support