Proposal for a Council Regulation (EC) on the development and consolidation of democracy and the rule of law and respect for human rights and fundamental freedoms
Date: 1997-07-24
Institutions: European Commission
Subjects: EU policy, European cooperation, budget, democracy, human rights

W'fpippiflpl 

COMMISSION OF THE EUROPEAN COMMUNITIES 

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* 
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Brussels,  24.07.1997 
COM(97) 357  final 

97/ 0191  (SYN) 

Proposal  for a 

COUNCIL  REGULATION (EC) 

ON THE DEVELOPMENT  AND CONSOLIDATION  OF DEMOCRACY  AND THE 
RULE OF LAW AND RESPECT FOR HUMAN RIGHTS AND  FUNDAMENTAL 
FREEDOMS 

(presented  by the Commission) 

EXPLANATORY  MEMORANDUM 

I. 

The  Community's  commitment  to  the  development  and  consolidation  of 
democracy  and  the  rule  of  law  and  respect  for  human  rights  and  fundamental 
freedoms  is relatively  recent.  The  Treaties  establishing  the  Community  make  no 
mention  of  human  rights, which  first  appear  thirty  years  later  in  the  Preamble  to 
the  Single  European  Act.  The  Treaty  on  European  Union  represents  a  major 
breakthrough:  for  the very  first  time the  need  for  the  European  Union  to  respect 
human  rights  is written not  only  into the Preamble  but  into the provisions  of  the 
Treaty.  This  is  one  of  the  most  innovative  features  of  the  Maastricht  Treaty, 
under which: 

* 

* 

Respect  for  human  rights  is  an  essential  element  of  membership  of  the 
European Union and a fundamental  principle  for  its activities.  Article F.2 
provides  that  "me  Union  shall  respect  fundamental  rights,  as  guaranteed 
by  the  European  Convention  for  the  Protection  of  Human-Rights  and 
Fundamental  Freedoms signed  in Rome on 4 November  1950 and  as they 
result from  the constitutional  traditions common to the Member  States, as 
general principles of European law." 

Article  130u(2) of the  EC  Treaty  provides  that  Community  policy  in  the 
sphere  of  development  cooperation  "shall  contribute  to  the  general 
objectives  of developing and consolidating  democracy  and the rule of law, 
and to that of respecting human rights and fundamental  freedoms". 

One  of the  most  noteworthy  measures  to  give  substance  to  this  commitment  has 
been  the  European  Parliament's  1994  initiative  to  bring  a  series  of  budget 
headings  specifically  dealing  with  the  promotion  of  human  rights  together  in  a 
chapter  of their own (B7-70) entitled  "European  Initiative  for  Democracy  and the 
Protection of Human Rights". 

II. 

With  so  new  an  approach,  the  initial  emphasis  was  on  pilot  projects  aimed  at 
developing  a broad  strategy,  an operating  framework,  operational  objectives  and 
suitable instruments. 

A number  of reports document the experience  gained.  The  1992,  1993 and  1994 
reports on the implementation  of the resolution adopted  on 28 November  1991 by 
the Council  and  the Member  States meeting  within the  Council  on human  rights, 
democracy  and  development  deal  only  with  funds  earmarked  for  developing 
" -countries under  Chapter B7-70  and other  headings.  The  1992-1993,  1994,  1995 
and  forthcoming  1996  reports  on  the  implementation  of  measures  intended  to 
promote  observance  of human rights and democratization  cover the use of all  B7-
70 resources.  They show: 

* 

* 

* 

considerable  growth  in human rights funding,  which  doubled  from  a total 
of ECU 45.1 million to over ECU 90 million in the period  1993-96; 

an increase in the thematic and geographical  scope of operations; 

the further  development of instruments  for  dialogue on, and promotion  of, 
human rights; 

«2.5»-  4 

* 

difficulties  with  the  consistency,  transparency  and  visibility  of  the 
Community's human rights activities. 

The need  for  a broad  review  of the  experience  acquired  led  the  Commission,  on 
22 November  1995,  to  adopt  a  communication  to  the  Council  and  Parliament 
entitled "The European Union and the external dimension of human rights  policy: 
From Rome to Maastricht and beyond".1  After  taking stock of the first  few years' 
achievements,  the  report  outlines  future  priorities,  setting  out  new  issues  and 
strategies aimed at enhancing the consistency and effectiveness  of the approach. 

A  key  aspect  of  these  strategies  is  making  the  most  of  financial  resources, 
particularly  from  the standpoint of their compatibility with the objectfves  pursued 
in terms of flexibility,  complementarity and administrative  transparency. 

III. 

Such  is  the  background  to  the  debate  on  the  need  to  provide  the  human  rights 
headings  with  a  legal  basis,  an  issue  which,  as  long  ago  as  July  1994,  was  the 
subject  of  a  special  communication  to  the  budgetary  authority  in  which  the 
Commission  undertook  to  propose  legal  bases  for  a  certain  number  of  budget 
headings.2 

The  European  Parliament  stiffened  this  requirement  by  prefacing  Part B  with  a 
note to the effect  that any significant  Community action must have a suitable  legal 
basis. 

The Council  has adopted  a paper on the question of legal bases with a view to  an 
agreement  between  the  three  institutions.  The  paper  establishes  the  general 
principle  that  a legal  base must be adopted  before  budget  appropriations  are  used 
for any Community  operation. 

Several  Member  States  have  advocated  the  adoption  of  a  legal  basis  for  human 
rights activities under Chapter B7-70. 

IV. 

The  adoption  of  such  a  legal  basis  would  be  conducive  to  sound  management, 
transparent administration and the coordination of activities. 

This  legal  basis  is aimed  at defining  the  scope  of  Community  action  to  promote 
human rights, democracy  and the rule of law and the general principles  governing 
procedures  for  the  implementation  of  such  action,  and  establishing  arrangements 
for  the  coordination  of  activities  and  conditions  for  cooperation  between  the 
-  Community,  international  and  regional  organizations  and  non-governmental 
organizations.  Particular  importance  should  be  attached  to  the  transparency  and 
rapidity  of  procedures  and  to  the  clarity  of  the  criteria  for  cooperation  with 
international,  regional  and  non-governmental  organizations  and,  where  relevant, 
national authorities. 

1  COM (95) 567  final. 

2 

SEC(94)  1106 final. 

The  proposal  for  a  Regulation  is  rooted  in  the  positions  of  the  Council  and  the 
European  Parliament  and  in  Commission  papers,  especially  the  abovementioned 
communication  of November  19953 taking  stock of achievements  in the field and 
establishing  guidelines  for  future  action.  It  takes  account  of  concerns  expressed 
by  the  institutions  and  the  Member  States,  particularly  regarding  the  overall 
consistency of action. 

A key feature  is the provision  for  immediate  funding  in response  to emergencies. 
Keeping  in mind the principles of budget transparency, the aim has been to find a 
suitable formula  for rapidly  funding  such measures as the dispatch of observers in 
various  situations  ("political"  trials,  serious  human  rights  violations,  conflict 
prevention  etc.).  Such  measures  are  crucial  to  the  credibility  of  Community 
action. 

Chapter  I  lays  down  the  operational  objectives  and  the  general  criteria  for 
Community  funding  of measures under this Regulation. 

Subject  to  the  rules  governing  the  implementation  of  the  budget,  Chapter  II  lays 
down  procedures  for  the  implementation  of  Community  support,  in  particular 
providing  for  emergency  operations  under  certain  circumstances.  This  chapter 
also  covers  relations  with  operational  partners  and  cooperation  with  regional  and 
international  intergovernmental  organizations  working  to  promote  human  rights 
and democratic principles. 

Chapter  III  of  the  proposal  for  a  Regulation  lays  down  the  decision-making 
procedures  for  Community-financed  projects  and programmes  to promote  human 
rights,  democracy  and  the  rule  of  law.  It  is  proposed  that  the  Commission  be 
given  responsibility  for  taking  decisions  relating  to  operations  under  this 
Regulation and managing their implementation.  For certain decisions, however, it 
would  be  assisted  by  an  advisory  committee.  This  chapter  also  provides  for 
regular  evaluation  of  activities  in  the  field  of  human  rights  and  democratic 
principles  and  for  the  Commission  to present  an annual  report to the Council  and 
Parliament on all the operations  funded. 

This  proposal  for  a  Regulation  should  help  guarantee  the  consistency  of 
Community  measures  to  promote  human  rights  and  democratic  principles. 
It 
should guarantee clarity and transparency, while offering  the flexibility  needed  for 
a prompt response to emergencies.  It should  establish the conditions  for  effective 
and  visible  action,  ensuring  that  action  is  better  attuned  to  the  needs  of  partners 
and better coordinated  with Member States'  initiatives. 

COM(95) 567  final 

P R O P O S AL F OR A COUNCIL REGULATION (EC) No 

of.... 

ON THE DEVELOPMENT AND CONSOLIDATION  OF DEMOCRACY AND THE 

RULE OF LAW AND RESPECT FOR HUMAN RIGHTS AND 
FUNDAMENTAL  FREEDOMS 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  13 Ow thereof, 

Having regard to the proposal from  the Commission, 

Acting in accordance with the procedure laid down in Article  189c of the Treaty, 

Whereas  Article F.2  of the  Treaty  on European  Union  stipulates  that the  Union  respects 
fundamental  rights,  as  guaranteed  by  the  European  Convention  for  the  Protection  of 
Human  Rights  and Fundamental  Freedoms  signed  in Rome  on 4 November  1950 and  as 
they  result  from  the  constitutional  traditions  common  to  the  Member  States,  as  general 
principles of European law; 

Whereas  Article  130u(2)  of  the  EC  Treaty  requires  Community  action  in  the  sphere  of 
development  cooperation  to  contribute  to  the  general  objectives  of  developing  and 
consolidating  democracy  and the rule of law, and to that of respecting  human  rights  and 
fundamental  freedoms; 

Whereas Community  action to promote human rights and democratic principles is guided 
by  belief  in  the  universality  and  indivisibility  of  human  rights, principles  that  underpin 
the international  system for the protection of human rights; 

Whereas Community  action to promote human rights and democratic principles  is rooted 
in the general principles established by the Universal Declaration of Human Rights; 

Whereas  human  rights  within  the  meaning  of  this  Regulation  should  be  considered  to 
encompass  respect  for  international  humanitarian  law, also taking  into  account  the  1949 
Geneva  Conventions  and  the  1977  Additional  Protocol  thereto,  the  1951  Geneva 
Convention  relating  to  the  Status  of  Refugees,  the  1948  Convention  on  the  Prevention 
and  Punishment  of  the  Crime  of  Genocide  and  other  acts  of  international  treaty  or 
customary  law; 

Whereas  the  resolution  on  human  rights,  democracy  and  development  adopted  by  the 
Council  and  the  Member  States  meeting  within  the  framework  of  the  Council  on 
28 November  1991  sets  out  guidelines,  procedures  and  practical  measures  aimed  at 
promoting  civil and political  freedoms  alongside economic and social rights, by means of 
a representative political  system based on respect for human rights; 

O-

Whereas  Community  action  to  promote  human  rights  and  democratic  principles  is  the 
product  of  a positive  and  constructive  approach  in  which  human  rights  and  democratic 
principles  are  seen  as  a matter  of  common  interest  for  the  Community  and  its  partners, 
and  as  a  subject  for  dialogue  that  can  produce  measures  to  promote  respect  for  these 
rights and principles; 

Whereas this positive approach should be reflected  by the implementation  of measures in 
support of democratization, the strengthening of the rule of law and the development  of a 
pluralist  and  democratic  civil- society  and  by  confidence-building  measures  aimed  at 
preventing conflicts,  supporting peace initiatives and addressing the issue of impunity; 

Whereas the financial  instruments used to support positive  action in individual  countries 
should be used in a manner consistent with geographical programmes and integrated with 
other development  instruments to maximize their impact and  effectiveness; 

Whereas  these  operations  should  in  particular  target  groups  such  as  children,  women, 
migrants,  minorities,  displaced  persons,  indigenous  peoples,  prisoners  and  victims  of 
torture; 

Whereas Community  support for  democratization  and observance of the principles of the 
rule  of  law  within  a  political  system  respecting  the  individual's  fundamental  freedoms 
helps fulfil  the objectives  laid down in the agreements concluded by the Community  with 
its  partners,  in which  respect  for  human  rights  and  democratic  principles  is  an  essential 
element of relations between the parties; 

Whereas  governments,  which  bear  the  main  responsibility  for  building  democracy  and 
protecting human rights, are the prime partners for Community  action; 

Whereas  Community  action  on  human  rights, democracy  and the  rule  of  law  requires  a 
stronger identity; 

Whereas  the  quality,  impact,  visibility  and  continuity  of  operations  should  in  particular 
be  safeguarded  by  providing  for  multiannual  programmes  to  promote  human  rights  and 
democratic principles  in partnership with the authorities of the country  concerned,  taking 
account of its cultural sensibilities and specific needs; 

Whereas  efficient,  consistent  and  visible  action  requires  the  specific  characteristics  of 
action  on human  rights and  democratic  principles to be reflected  in the establishment  of 
flexible, transparent  and rapid decision-making procedures for the financing  of operations 
and projects  in this field; 

Whereas the Community  needs to be able to respond rapidly to emergencies  or  situations 
of  particular  importance  in  order  to  enhance  the  credibility  and  effectiveness  of  its 
commitment  to  the  promotion  of  human  rights  and  democratic  principles  in  countries 
where such situations arise; 

Whereas  the  procedures  for  the  award  of  assistance  and  the  evaluation  of  projects  in 
particular  should,  with  due regard  for  the Financial  Regulation  and budget  transparency, 
take  account  of  the  special  nature  of  the  recipients  of  Community  support  in  this  field, 
namely  the  non-profit  nature  of  their  activities,  the  risks  run  by  members  who  are  in 

? 

many cases volunteers, the sometimes hostile environment  in which they  operate and  the 
limited room for manoeuvre afforded  by their own resources; 

Whereas  decisions  to  fund  projects  to  promote  human  rights  and  democratic  principles 
must  be 
impartially,  without  racial,  religious,  cultural,  social  or  ethnic 
discrimination  between  bodies  receiving  Community  support  and  persons  or  groups 
targeted by the projects supported, and must not be guided by political  considerations; 

taken 

Whereas  procedures  should  be  established  for  the  implementation  and  administration  of 
aid  for  the  promotion  of  human  rights  and  democratic  principles  financed  from  the 
Community's  general budget, 

HAS ADOPTED THIS REGULATION: 

CHAPTER I 

Objectives  and  general  principles  of  action  to  promote  human  rights  and  democratic 
principles 

Article 1 

The  Community  shall  contribute  to  the  implementation  of  operations  to  develop  and 
consolidate  democracy  and  the  rule  of  law,  including  good  governance,  and  promote 
human  rights  and  fundamental  freedoms  in  accordance  with  the  general  conditions  laid 
down in this Regulation. 

Article 2 

The Community  shall in particular support operations aimed at: 

a)  promoting  economic,  social  and  cultural  rights, including  trade  union  rights,  together 
with  the  civil  and  political  rights  proclaimed  in  the  Universal  Declaration  of  Human 
Rights; 

b)  supporting  the  processes  of  democratic  change,  including  the  holding  of  free  and 

regular elections; training human rights and election observers; 

c)  promoting  or  strengthening  the  rule  of  law,  notably  through  measures  to  uphold  the 
independence  of  the  judiciary  and  strengthen  it  (the  administration  of  justice, 
treatment  of  offenders,  crime  prevention)  and  for  the  activities  of  parliaments  and 
other  democratically  elected  institutions;  supporting  institutional  and  legislative 
reform; 

d)  supporting  local,  national,  regional  or  international  institutions  involved  in  the 
protection  or  promotion  of  human  rights,  including  support  for  ombudsmen,  human 
rights prosecutors and international  criminal tribunals; supporting  efforts  to establish a 
permanent international  criminal court; 

e)  promoting  pluralist  civil  society  by  strengthening  the  institutions  needed  to  maintain 
that  pluralism,  including  non-governmental  organizations  (NGOs);  educating  and 
training civil society  in democratic principles; 

9 

f)  promoting  independent,  pluralist  and  responsible  media;  supporting  freedom  of 

expression and a free press; 

g)  supporting human rights education, training and awareness campaigns; 

h)  promoting equal opportunities and non-discriminatory  practices; 

i)  promoting administrative accountability  and good governance; supporting measures to 

fight corruption; 

j)  supporting confidence-building  measures to restore civil peace and  conflict-prevention 
schemes; promoting the observance of international humanitarian  law by all parties to 
a  conflict; 

k)  supporting  national  efforts  to  separate  civilian  and  military  functions;  training 
members  of  the  armed,  security  and  police  forces  and  the  staff  of judicial  and  penal 
institutions  and  raising  their  awareness  of  human  rights;  supporting  efforts  to 
reintegrate demobilized troops into civilian  life; 

1)  protecting  and  promoting  the  human  rights  of  target  groups,  in  particular  children; 
women,  migrants,  displaced  persons,  prisoners  and  victims  of  torture,  violence  or 
armed  conflict;  supporting  action against different  forms  of exploitation  or  trafficking 
in human beings, and in particular women and children; 

m)protecting  members  of ethnic, religious or linguistic  minorities, and  in particular  their 

rights and cultural  identities; 

n)  protecting indigenous peoples, their rights and cultures. 

Article 3 

The Community may also finance: 

•  public  awareness  and 

information  campaigns,  meetings  of  experts,  seminars, 
conferences  and  congresses  aimed  at increasing  understanding  of human rights  issues 
and Community  action in the field, 

• 

the  technical  assistance  necessary  for  the  implementation  of  projects  receiving 
Community  support,  including  the  exchange  of  technical  know-how  and  experience 
between European organizations and bodies in third countries, 

•  preparatory  feasibility  studies  and monitoring,  auditing  and evaluation  of  Community 

operations, 

•  costs arising from  the evaluation of tenders and the preparation of projects; 

•  general  studies  concerning  the  Community's  action  within  the  scope  of  this 

Regulation; 

• 

the cost of purchasing  and/or delivering  any product or equipment  and employing  any 
expatriate or local staff  strictly necessary for the implementation of operations; 

•  any  other  expenditure  related  to  the  implementation  of  operations,  including  the 

visibility  of the aid granted. 

O 

CHAPTER II 

Procedures  for  the  implementation  of  aid  to  promote  human  rights  and  democratic 
principles 

Article 4 

1. 

2. 

The  partners  eligible " for  financing  under  this  Regulation  are  regional  and 
international  organizations,  non-governmental  organizations,  national,  regional 
and  local  authorities  and  official  agencies,  community-based  organizations  and 
public- or private-sector  institutes and operators. 

Operations  financed  by 
this  Regulation  shall  be 
the  Community  under 
implemented  by  the  Commission  either  at  the  request  of  a partner  referred  to  in 
paragraph  1 or on its own initiative. 

Article 5 

To be eligible for  Community  aid, the partners referred  to in Article 4(1) must  have their 
main headquarters  in a Member  State of the Community  or in a third country  eligible  for 
Community  aid under this  Regulation.  Such headquarters  must be the effective  decision 
making  centre  for  all  operations  financed  under  this  Regulation.  Exceptionally,  the 
headquarters may be in another third country. 

Article 6 

Without  prejudice  to  the  institutional  and  political  environment  in  which  the  partners 
referred  to  in Article 4(1)  operate, the following  factors  shall  in particular  be  considered 
when determining  a body's suitability  for Community  funding: 

a)  its experience in the field of promoting human rights and democratic principles; 

b)  its administrative and financial  management capacities; 

c)  its technical and logistical capacity  in relation to the planned  operation; 

d)  the results,  where  relevant,  of  any previous  operations  carried  out,  in particular  those 

financed  by the  Community; 

e)  its  capacity  to  build  up  a working  relationship  with  other  elements  of  civil  society  in 

the third country  concerned; 

f)  its commitment  to  defending,  respecting  and promoting  human  rights  and  democratic 

principles in a non-discriminatory  manner. 

Article 7 

1. 

Aid  shall  not  be  allocated  to  the  partners  referred  to  in  Article 4(1)  unless  they 
undertake to comply with the allocation and implementation  conditions  laid  down 
by the Commission, to which they shall be contractually  bound. 

/ 

i 

2. 

3. 

4. 

Activities  aided  by the  Community  shall  be implemented  in  accordance  with  the 
objectives  laid down in the Commission financing  decision. 

Community financing  under this Regulation shall take the form  of grants. 

Where  operations  financed  under  this  Regulation  are  the  subject  of  financing 
agreements between the Community  and the recipient  countries, such  agreements 
shall  stipulate  that  taxes, charges  and  customs  duties  are  not  to  be  borne  by  the 
Community. 

Article 8 

1. 

2. 

Participation  in invitations to tender  and the  award  of  contracts  shall  be  open  on 
equal terms to natural or legal persons of the Member States and the host  country. 
It may be extended to other countries in exceptional and duly justified  cases. 

Supplies  shall  originate  in  the  Member  States  or  the  host  country."  They  may 
originate in other countries in exceptional and duly justified  cases. 

Article 9 

1. 

In the interests of consistency  and complementarity  and  in order to maximize  the 
overall  effectiveness  of  operations,  the  Commission  may  take  any  coordination 
measures necessary, and in particular: 

a)  introduce  a system  for the exchange and  systematic  analysis of  information  on 
operations  financed  or  considered  for  financing  by  the  Community  and  the 
Member States; 

b)  coordinate  the  implementation  of  operations  on  the  spot  by  means  of  regular 
meetings  for  the  exchange  of  information  between  the  representatives  of  the 
Commission and the Member States in the recipient country. 

2. 

The  Commission  may  take  any  steps  necessary  to  ensure  that  the  operations 
referred  to  in Article  1 are  coordinated  and  consistent  with  those  of  international 
and regional organizations and bodies. 

CHAPTER HI 

Procedures  for the implementation  of operations to promote human rights and  democratic 
principles 

Article  10 

The  Commission  shall  appraise,  decide  upon  and  administer,  monitor  and  evaluate 
operations  under  this  Regulation  in  accordance  with  the  budgetary  and  other  procedures 
in  force,  and  in  particular  those  laid  down  in the  Financial  Regulation  applicable  to  the 
general  budget  of  the  European  Communities.  It  shall  lay  down  the  conditions  for 
allocating, mobilizing and implementing aid under this Regulation. 

/A 

Article 11 

1 • 

The  following  shall  be  adopted  according  to  the  procedure  laid  down  in  Article 
12: 

•  decisions  on  operations  for  which  financing  under  this  Regulation  exceeds 
ECU 2 million  and  any modification  to  such  operations  leading  to  an  increase 
of more than 20% in the sum initially  agreed; 

•  programmes  intended  to  provide  a  coherent  framework  for  action  in  a  given 
country  or  region  or  in  a  specific  field  where  the  scale  and  complexity  of  the 
needs identified  are such that they seem likely to continue. 

2. 

The Commission  shall notify  the Committee referred  to in Article  12 of  financing 
decisions that  it intends to take concerning  projects  and programmes  costing  less 
than ECU 2 million.  Notice  shall  be  given  at  least  a week  before  the  decision  is 
taken. 

Article  12 

1. 

2. 

The  Commission  shall be assisted  by an advisory  committee, hereinafter  referred 
to  as  "the  Committee",  composed  of  representatives  of  the  Member  States  and 
chaired by the representative of the Commission. 

The  representative  of  the  Commission  shall  submit  to  the  Committee  a  draft  of 
the  measures  to  be  taken.  The  Committee  shall  deliver  its  opinion  on  the  draft 
within  a time  limit  which the  Chairman  may  lay  down  according  to  the  urgency 
of the matter,  if necessary  by taking  a vote.  The opinion  shall be recorded  in the 
minutes;  in  addition  each  Member  State  shall  have  the  right  to  ask  to  have  its 
position recorded  in the minutes.  The  Commission  shall take the utmost  account 
of the opinion  delivered  by the Committee.  It shall  inform  the Committee  of the 
manner in which its opinion has been taken into account. 

Article  13 

1. 

The Commission  may adopt emergency measures to respond effectively  to urgent 
and unforeseeable  needs where these arise  from: 

• 

• 

the  sudden  suspension  of  the  democratic  process  or  the  emergence  of  a 
state  of  crisis  or  exceptional  and  imminent  danger  affecting  all  or  part  of 
the  population  of  a country  and  posing  a  grave  threat  to the  fundamental 
rights and freedoms  of the individual; 

specific  situations  that  are  sensitive  in  terms  of  the  observance  of 
democratic  rules,  the  principles  of  the  rule  of  law  and  fundamental 
freedoms. 

2. 

Where operations fulfil  these conditions: 

the Commission shall adopt its decision, 

it shall inform the Member States in writing  forthwith. 

/3 

Article  14 

Once  a  year  the  Committee  referred  to  in  Article  12  shall  discuss  general  guidelines 
presented  by  a representative  of the  Commission  for  operations  under this  Regulation  to 
be  undertaken  in  the  year  ahead  and  examine  any  general  or  specific  issues  concerning 
Community  aid in the field. 

Article 15 

The  Commission  shall  regularly  evaluate  operations  financed  by  the  Community  under 
this  Regulation  in  order  to  establish  whether  they  have  achieved  their  objectives  and  to 
produce  guidelines  for  improving  the  effectiveness  of  subsequent  operations.  The 
Commission  shall  submit  to  the  Committee  a  summary  of  the  evaluation  exercises 
carried  out that it might,  if necessary, examine.  The evaluation reports  shall  be  available 
to the Member  States on request. 

Article 16 

All  contracts  or  financing  agreements  concluded  under  this  Regulation  shall  provide  in 
particular that the Commission and the Court of Auditors may conduct  checks on the spot 
and  at  the  headquarters  of  the  partners  referred  to  in Article  4(1)  according  to  the  usual 
procedures  established  by  the  Commission  under  the  rules  in  force,  and  in  particular 
those  of  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities. 

Article  17 

1. 

At the close of each financial  year, the Commission  shall submit  an annual  report 
to the European  Parliament  and to the  Council  with  a summary  of the  operations 
financed  in the course of that year. 

The  summary  shall  contain  information  concerning  the  agencies  with  which  the 
operations referred  to in Article  1  have been  implemented. 

The report  shall  also  include  a review  of any  external  evaluation  exercises  which 
may have been conducted on specific  operations. 

2. 

Within a month of its decision, the Commission  shall notify  the Member  States of 
operations  and projects  approved,  indicating the sums, the nature of the operation, 
the recipient country  and the partners  involved. 

Article  18 

Three  years  after  the  entry  into  force  of this  Regulation  the  Commission  shall  report  to 
the  European  Parliament  and  to  the  Council,  giving  an  overall  evaluation  of  the 
operations  financed  by  the  Community  under  the  Regulation,  together  with  suggestions 
as to its future  and proposals for any necessary  amendments. 

'7 

Article  19 

This  Regulation  shall  enter  into  force  on  the  third  day  following  its  publication  in  the 
Official Journal  of the European  Communities. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all 
Member States. 

Done at Brussels, 

For the Council 

The President 

/r 

FINANCIAL STATEMENT 

1. 

TITLE OF OPERATION 

The development and consolidation of democracy and the rule of law and respect for 
human rights and fundamental freedoms. 

2. 

BUDGET HEADING  INVOLVED 

The budget headings concerned in 1997 are: 

Heading 

Title 

Budget 

B7-70 

B7-7000 

B7-7001 

B7-701 

B7-702 

B7-703 

B7-704 

B7-705 

B7-707 

B7-708 

B7-709 

European  Initiative  for  Democracy  and  the 
Protection  of Human  Rights 

Commitments 

Payments 

Support  for  democracy  in  the  countries  of 
central and eastern  Europe and in the Balkans 

10 000 000 

8 000 000 

Community  measures  to  help  democracy  and 
support  the  peace  process  for  the  Republics 
formerly  part of Yugoslavia 

5 000 000 

5 000 000 

Support 
in 
Independent  States and  Mongolia 

democracy 

for 

the  New 

10 000 000 

8 000 000 

Human 
developing  countries 

rights 

and  democracy 

in 

the 

17 000 000 

12 700 000 

Democratization  process  in Latin America 

12 625 000 

10 625 000 

Other measures to promote human  rights 

7 000 000 

6 800 000 

MEDA  programme  for  democracy 

8 000 000 

5 000 000 

Support  for  rehabilitation  centres  for  torture 
victims 
offering 
concrete  help  to  victims  of  human  rights 
abuses 

for  organizations 

and 

6 000 000 

5 800 000 

Support  for 
international 
the  activities  of 
criminal  tribunals  and  for  the  setting  up  of  a 
Standing  International  Criminal  Tribunal 

3 000 000 

3 000 000 

Support  for,  and  supervision  of,  electoral 
processes 

p.m. 

p.m. 

TOTAL 

78 625 000 

64 925 000 

A-3041 

Support for  international non-governmental organizations working for the 
establishment of an international criminal court (ECU 300 000) 

These budget headings pursue the following objectives: 

/• 

B7-7000 

This programme  is intended  to  support  the development  of democracy  and  of the rule of 
law and the development of civil society in the countries of central and eastern Europe. 

The  heading  is  intended  to  cover  support  -  involving  NGOs  of  a  regional  nature  as 
extensively  as possible,  and  targeting  women's  associations  in particular  - for  measures 
taken  by  associations  actively  campaigning  for  the restoration  of democracy  in civil  life 
in the countries of central and eastern Europe. 

B7-7001 

This  programme  is  intended  to  cover  the  financing  of  measures  to  support  the  peace 
process, calm tensions  and  develop democracy, by among other measures, the  promotion 
of  free  and  independent  media,  in  the  republics  formerly  part  of  Yugoslavia  (Slovenia, 
Croatia, Montenegro, FYROM and  Bosnia-Herzegovina). 

B7-701 

This  heading  is  intended  to  cover  the  implementation  of  a  programme  to  support 
democracy  and the rule of law, and the transposition  of internationally  recognized  human 
rights, rights for  the protection  of minorities  and  indigenous peoples  and to develop  civil 
society  in  the  independent  states  of  the  former  Soviet  Union  and  Mongolia  in  the 
framework  of the European  Parliament resolution of  15 July  1993. 

B7-702 

This  heading  is  intended  to  cover  support  for  operations  promoting  human  rights  and 
democracy,  notably  those relating  to the exercise of public  authority,  the development  of 
civil  society  and  conflict  prevention,  in  strict  association  with  the  development  policies 
of the European  Union  in favour  of the developing countries. 

B7-703 

This  heading  is  intended  to  cover  the  financing  of  special  activities  to  contribute  to  the 
process  of  democratization  in  Latin  America,  including  Haiti  and  Cuba,  particularly  in 
assisting  the  reintegration  into  civilian  life  of  those  who  have  fought  in  civil  wars  in 
Central  America. 

B7-704 

This  heading  is  intended  to  cover  financing  of  the  activities  of  organizations  pursuing 
humanitarian  aims  and  promoting  human  rights  in third  countries.  This  aid  is  allocated 
for  projects  to be undertaken  in third  countries  and  in the European  Union  in the form  of 
grants to: 

•  promote Community  and international  initiatives aimed at abolishing  the death  penalty 

in all countries by the year 2000, 

• 

train people  who are called  upon  to teach  others about human  rights (judges,  lawyers, 
civil  servants, those responsible  for  the training of police and  security  forces,  teachers, 
etc.), 

'3-

• 

reinforce  respect for the rights of the child, 

•  promote and protect women's rights, 

• 

• 

reinforce  respect for ethnic minorities such as gypsies, 

strengthen respect for the human rights of indigenous peoples worldwide, 

•  promote training with organizations specializing in the defence of human rights, 

• 

support for organizations which specialize in caring for  refugees, 

•  promote  the  protection  of  human  rights  in  countries  where  there  is  soon  to  be  a 

change of sovereignty. 

B7-705 

This  programme  is  designed  to  support  the  development  of  democracy,  of  the 
constitutional  state  and  of  civil  society  in  the  countries  covered  by  the  MEDA 
programme. 

B7-707 

This  appropriation  is  intended  to  support  rehabilitation  centres  for  torture  victims  and 
other organizations offering  concrete help to victims of human right abuses. 

B7-708 

This  appropriation  is  intended  to  help  improve  the  functioning  of  the  UN  international 
War  Crimes  Tribunal  for  the former  Yugoslavia  and the  International  Criminal  Tribunal 
for  Rwanda  by  funding  operating  expenditure  incurred  in  gathering  evidence  (missions, 
investigations, travel  by witnesses, exhumations, etc.) and preparations  for  the  setting-up 
of a Standing International  Criminal Tribunal. 

A-3041 

This  appropriation  provides  special  support 
organizations working for the establishment of a permanent, international criminal court 

international  non-governmental 

for 

3. 

LEGAL  BASIS 

The proposed  Council Regulation is based on Article  130w of the Treaty. 

4. 

DESCRIPTION  OF  OPERATION 

4.1  General  objective 

To contribute to the implementation  of operations to develop and consolidate  democracy 
and  the  rule  of  law,  including  good  governance,  and  respect  for  human  rights  and 
fundamental  freedoms. 

if 

4.2  Period covered  and arrangements for renewal or extension 

The operation is of indefinite duration. 

5. 

CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1  Non-compulsory  expenditure 

5.2  Differentiated  appropriations 

5.3  Type of revenue  involved 

Not applicable 

6. 

TYPE OF EXPENDITURE OR REVENUE 

-  Up to  100%  subsidy 

-  Subsidy  for joint financing  with other sources in the public and/or private sector 

7. 

FINANCIAL IMPACT 

7.1  Method  of calculating  total  cost of operation  in  1998 (relationship  between  unit 

costs and total cost) 

The  cost  of  Chapter  B7-70  -  European  Initiative for  democracy  and  the protection  of 
human rights in  1998 is the sum of the individual budget headings listed below. 

Heading 

I 

Title 

I  1998 PDB (ECU) 

Support  for  democracy  in  central  and  eastern  Europe  and  the 
Balkans,  including  the  Republics  formerly  part of  Yugoslavia 

15 000  000 

B7-701 

Support  for  democracy  in  the  New  Independent  States  and 

10 000  000 

Mongolia 

B7-702 

Human  rights  and democracy  in the developing  countries 

17 000  000 

B7-703 

Democratization  process  in  Latin  America 

12 625  000 

B7-7040 

Other  measures  to protect  and  promote  human  rights 

16 000  000 

B7-705 

MEDA  programme  for  democracy 

B7-709 

Support  for,  and  supervision  of,  electoral  processes 
_ _ _ __ 

8 000  000 

p.m. 
78 625  000 

'9 

7.2  Itemised  breakdown of cost 

See 7.1 

7.3  Operational  expenditure on studies, meetings of experts etc. included in Part B 

7.4 Schedule for multinational  operations 

Not applicable. 

8. 

FRAUD  PREVENTION MEASURES;  RESULTS OF MEASURES TAKEN 

Recipients  of  financial  assistance  under  Chapter B 7-70  must  sign  a  cofinancing 
agreement  with  the  Commission.  Though  each  Directorate-General  has  its -own  model, 
all these agreements contain standard anti-fraud  provisions.  By way of example, the  draft 
contract for headings managed by DGIA/A2 contains the following  clauses: 

"Article  11. AUDIT  AND  MONITORING: 

1. 

2. 

3. 

The  Organisation  agrees  to  allow  duly  authorised  agents  of the  Commission  and 
the  Court  of  Auditors  of  the  European  Communities  to  conduct  any  audits  or 
inspections  they deem  necessary to check the financial  running  of the project  and 
its  accounts.  In  particular,  the  Organisation  shall  grant  unrestricted  access  to  the 
project  site,  its  premises,  the  accounts  book  and  supporting  documents.  All 
documents relating to the performance  of this agreement shall be available. 

The  Organisation  furthermore  agrees  to  allow  duly  authorised  agents  of  the 
Commission  to  carry  out  on-site  visits  to  monitor  the  implementation  of  the 
project  according to the terms set out in the application (Annex A) 

The  Organisation  shall  ensure  that  the  accounts  book  and  all  originals  of  the 
supporting  documents are kept for a period of five years following  the completion 
of the  project." 

The  Commission's  authorized  agents  visit  organizations  while  operations  are under  way 
to check that everything  is going  smoothly  and that funding  is being used  properly.  The 
reports  of  such  missions  provide  the  budget  heading's  administrators  with  a  detailed 
knowledge of the recipient  organization's  capacities and the management  of the  project's 
finances. 

DG XX  and/or  the  Court  of  Auditors  may  also  carry  out  inspections  at  the  site  of  the 
project  and the headquarters of recipient organizations. 

Administrators of Chapter B7-70 headings are responsible for examining the  intermediate 
and final  financial  reports that all recipient organizations have to present before  receiving 
In  principle,  this  method  enables  misuse  of  funds  to  be 
the  next  tranche  of  funding. 
avoided and offers  guarantees as to the proper execution of the project's  activities. 

J. Y\ 

9. 

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

9.1  Specific  and quantified  objectives; target population 

-  Specific  objectives: links with general  objective 

The  Commission's 
inter-departmental  Human  Rights  Coordination  Group,  which 
includes  the  administrators  of  the  B7-70  budget  headings,  highlighted  the  following 
priorities directly related to the general objective described under point 4 above: 

Democracy 

. 

.. 

Priorities 

(a) helping prepare elections; (b) monitoring elections. 

Rule of law 

(a)  parliamentary  business;  (b)  judicial  procedures;  (c)  legal  protection  of  civil  and 
political  liberties;  (d)  government  human  rights  institutions;  (e)  institutional  reform;  (f) 
training armed and security forces; (g) administrative  accountability. 

Pluralist  and democratic civil society 

(a)  independent,  pluralist  and  responsible  media;  (b)  education  in  human  rights  and 
fundamental  freedoms;  (c)  equal  opportunities  and  non-discriminatory  practices  (non-
sexist  approach,  combating racism, xenophobia and religious intolerance); (e) creation of 
local groups and associations; (e) psycho-social  rehabilitation. 

Confidence-building  measures 

(a)  conflict  prevention  and  negotiation;  (b)  international 
criminal  courts; (c) civilian-military  relations; (d) support for peace  efforts. 

institutions/international 

Target  groups 

•  Women 

•  Children 

•  Minorities 

•  Indigenous  peoples 

•  Migrants, refugees  and returnees 

•  Torture  victims 

•  Prisoners 

_/ 

9.2  Grounds for the operation 

-  Need for Community financial  aid 

The  Community's  international  legal  personality  endows  it,  in  international  relations, 
with the capacity  to exercise rights and assume obligations  across the entire spectrum  of 
objectives  laid  down  in  the  Treaty.  Action  is  taken  in  accordance  with  the  United 
Nations  Charter  and  the  Universal  Declaration  of  Human  Rights  supplemented  by  the 
two  international  pacts  on  civil  and  political  rights  and  economic,  social  and  cultural 
rights. 
It  is  also  based  on  the  requirements  of  the  main  international  and  regional 
instruments  for  the  protection  of  human  rights.  The  priorities  espoused  by  the 
international  community  in the final  declaration  and the action programme  of the  World 
Conference  on Human Rights (Vienna, June  1993) created a framework  for  action that is 
one of the European Union's main points of reference. 

Building on this foundation,  the Treaty on European Union has strengthened  Community 
action  in  the  field  of  human  rights  and  democratic  principles.  Article  130u(2)  of  the 
Treaty  expressly  provides  that  Community  policy  in  the  sphere  of  development 
cooperation  "shall  contribute  to  the  general  objectives  of  developing  and  consolidating 
democracy  and  the rule  of  law,  and  to  that  of respecting  human  rights  and  fundamental 
freedoms."  The  Community's  human-centred  development  aid  policy  is  closely  tied  to 
the  enjoyment  of  fundamental  rights  and  freedoms,  the  recognition  and  application  of 
democratic  principles,  the  consolidation  of the  rule  of  law  and  good  governance.  This 
approach  -  set  out  in  the  resolution  on  human  rights,  democracy  and  development 
adopted on 28 November  1991 by the Council and the Member  States meeting within the 
Council  -  is  founded  on  open  and  constructive  dialogue  with  the  governments  of  the 
countries  concerned  and  the  implementation  of  positive  measures  to  raise  awareness  of 
and promote  human  rights  and democracy.  It is aimed at strengthening  the  link  between 
development  aid,  human  rights  and  democratic  principles,  the  rule  of  law  and  good 
governance. 

-  Choice of ways and means 

•  advantages over possible alternatives (comparative advantages) 

Chapter B7-70 is one of the few  instances of direct cooperation between the  Commission 
and civil society inside and outside the Community.  The gathering of these headings  into 
a  single  chapter  in  1994 helped  ensure  that  spending  outside  the  Community  on  human 
rights and democratization  was managed with the requisite consistency  and  transparency. 
The  inter-departmental  Human  Rights  Coordination  Group  has  helped  establish 
guidelines,  identify  terms  of  reference  and  common  criteria  for  selecting  projects  and 
harmonize procedures. 

This  approach  enables  greater  account  to  be  taken  of  the  realities  of  the  countries  and 
regions concerned  and the priorities  of governmental  and non-governmental  partners  and 
ensures  that  proposed  operations  are  relevant  to  the  situation  on  the  ground.  Its  main 
advantages  are  a  flexibility  enabling  it  to  adapt  to  the  needs  of  the  target  group,  the 
interweaving  of the  thematic  and  geographical  approaches,  and  the  innovative  nature  of 
schemes  which  receive  small-scale  funding  under  Chapter  B7-70  but  may,  if  successful, 
be  developed  on  a  larger  scale  using  technical  assistance  or  development  aid  resources. 

<&L 

This  system  also  helps  ensure  the  continuity  of  action  while  offering  scope  for  the 
development of a medium- to long-term strategic approach. 

•  explanatory reference  to similar Community or national operations 

The  trend  towards  the  harmonization  of  selection  and  financing  procedures  within 
Chapter B7-70  both  simplifies  the  selection  of  schemes  and  facilitates  relations  between 
the Commission  and recipient organizations.  This makes it easier to gauge the impact of 
measures  financed  under this chapter and  keep operations  in  line with  the priorities  laid 
down by the inter-departmental group. 

Community  action  is  distinguished  from  similar  initiatives  at  national  level  by  the  fact 
that it projects  a European  identity rooted in the Member  States'  shared  commitment.  In 
operational  terms,  the  Commission's  worldwide  network  of  delegations  and  offices 
constitutes  a particularly  effective  tool  for  the  assessment,  monitoring  and  evaluation  of 
projects.  It  also  helps  focus  the  Commission's  international  efforts  and  maximize  the 
impact.  Other donors consider  Commission  funding  a solid  guarantee  of the quality  of a 
project  and the trustworthiness of the recipient  organization. 

-  Main factors of uncertainty which could affect  the specific results of the operation 

Uncertainty  and  risk  are  intrinsic  to  the  schemes  backed.  Some  take  place  against  a 
background  of  extreme  tension  or  conflict.  The  subjects  covered  are  sensitive  and 
activities  may  be  seriously impeded  or  interrupted  by  opposition  from  the  authorities  or 
social  factions. 

9.3  Monitoring and evaluation of the operation 

-  Performance  indicators selected 

•  output indicators (measuring activities used) 

• 

impact indicators (measuring performance  against  objectives) 

All  projects  are  evaluated  in  terms  of  the  technical,  logistical,  administrative  and 
financial  capacity  of the  organizations  presenting  them.  Evaluation  can  be broken  down 
as follows: 

1.  conformity  with  the  general  objectives  of  the  Union  and  the  budget  ,  chapter  and 

heading  concerned, 

2.  achievement  of the project's  objectives, 

3.  cost-effectiveness, 

4.  quality of the organization, 

5.  relevance to the situation on the ground, 

6.  impact and spin-offs  of the project, 

7.  visibility of the Union's  contribution. 

A3 

At the end of the contract, all recipients must present a report on a project's  activities and 
spending  before  the  file  can  be  closed.  These  reports  are  examined  in  the  light  of  the 
original  work plan, objectives  and  budget.  Criteria  include cost-effectiveness,  spin-offs 
and the visibility  of  Community  support.  Any  irregularity  for  which  the organization  is 
unable  to  provide  an  explanation  may  lead  to  the  dispatch  of  an  on-the-spot  inspection 
mission by the unit or, where appropriate, Financial Control and/or the Court of Auditors. 

Various  annual  reports take stock of the use of these  financial  resources.  The issues are 
covered  horizontally  by  the  reports  on  the  implementation  of  measures  intended  to 
promote  observance  of human  rights  and  democratization  (1992-1993,  1994,  1995)  and 
the  reports  on  the  implementation  of  operations  to  promote  human  rights  and 
democratization  and  the  reports  on  the  implementation  of  the  resolution  adopted  on 
28 November  1991 by the Council and the Member States meeting within the Council on 
human  rights,  democracy  and  development  (1992,  1993 and  1994).  The  general  report 
on  the  activities  of  the  European  Communities  provides  general  information  on  the 
execution  of the various budget  headings.  These are supplemented  by the reports on the 
use of the individual headings of Chapter B7-70. 

10.1 Impact on the number of posts. 

NB: The posts will be with Directorates-General  IA, IB and VIII. 

Type of post 

Staff  to  be  assigned  to 
managing the operation 

Source 

Duration 

Permanent 
posts 

Temporar 
y posts 

Additional 
resources 

Existing 
resources 
in  the  DG 
or 
departmen 
t 
concerned 

Officials 
or 
temporary 
staff 

A 

B 

C 

Other resources 

Total 

8 

5 

3 

16 

None 

8 

5 

6 

19 

10.2 Overall  financial  impact  of additional  human  resources 

Amounts 

Method of calculation 

ECU 

Officials 
Temporary  staff 
Other  resources 

T Q T AL 

iv 

10.3 Impact on other administrative expenditures as a result of the operation 

ECU 

Budget heading 

Amounts 

Method of calculation 

A-2510 

TOTAL  84 000 

: 

~ 

The  operating  costs  of  the  proposed  new  committee  will  be  covered  by  Item A-2510. 
The  committee  will  comprise  no  more  than  two  representatives  per  Member  State  and 
meet no more than twice a year. 

o8S" 

ISSN 0254-1475 

COM(97) 357  final 

DOCUMENTS 

EN 

06  05 

Catalogue  number  :  CB-CO-97-348-EN-C 

ISBN  92-78-22444-8 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

o2cT