WRITTEN QUESTION E-3292/98

by Iñigo Méndez de Vigo (PPE) to the Council

(10 November 1998)

Subject: The US debt to the UN and action to reclaim it

The European Parliament, following the adoption of an emergency resolution supported by the great majority of the political groups, has called on the Council and the Member States to press for the recovery of the sum of approximately US$ 1 600 million owed by the US to the UN in unpaid financial contributions.

What strategy does the Council intend to adopt to resolve this problem as rapidly as possible? Is the Council aware that the non-payment of this debt could have the effect of restricting the UN'S activities in the fields of humanitarian aid and peacekeeping?

Reply

(29 March 1999)

The Council is concerned about the arrears owed by the United States to the United Nations, which represent nearly two-thirds of the total arrears owed to the Organisation. At the end of December 1998, the arrears owed to the United Nations amounted to US $2,03 thousand million). The United States remains the largest debtor, their unpaid assessments amounting to US $1,3 thousand million. The Union has expressed this concern on numerous occasions both in multilateral fora and in its bilateral contacts with the United States.

In his intervention on behalf of the EU in the general debate of the 53rd General Assembly on 22 September 1998, the President of the Council underlined that continuing high levels of unpaid assessments were undermining the financial stability and liquidity of the UN and that this placed a heavy and unfair burden on peacekeeping troop contributing countries. He called on all UN Member States to fulfil their Charter obligations and underlined that the United States could not be exempt from such obligations.

Following the recent Congressional elections, the President of the Council reiterated this concern, notably about the fact that, once again, no progress had been made this year regarding outstanding arrears. He expressed the Union's expectation that the US Administration would take up and vigorously pursue discussion of the US arrears issue with the newly formed Congress as soon as possible and appealed to Secretary of State Albright to convey the EU's concerns to President Clinton and Congress and ask them to redouble their efforts to resolve the impasse. These concerns were also expressedon 17 November 1998 in a declaration by the Presidency on behalf of the Union circulated to the UN General Assembly.

The Council fully shares the concern expressed in the Resolution adopted by the European Parliament on 8 October 1998 on this question. At the Union's request, this Resolution has been circulated to the UN membership in New York as a UN General Assembly document.

The Union, whose Member States accounted for 36,2 % of the regular budget and 38,6 % of the peacekeeping budget in 1998, is firmly committed to finding lasting solutions to the UN's financial crisis. Placing the UN on a sound and viable financial basis is an integral part of the overall effort to strengthen and modernise the Organisation. The Union presented proposals on UN reform in 1996. These proposals inter alia contain provisions for increasing disincentives for non-payers. Work is under way in the UN General Assembly's Fifth Committee to consider, for example, the tightening of the application of Article 19 of the UN Charter (suspension of a Member State's vote in the General Assembly). Other possible measures envisaged include preferential treatment in the area of procurement throughout the UN system for those who are fully to date with their assessed contributions.

The Council will continue to follow developments regarding US arrears with the utmost attention and to support the UN Secretary-General's efforts to restore the Organisation's financial viability.