Proposal for a Council Decision on the adoption of the position by the Community within the ACP-EC Committee of Ambassadors regarding the use of unallocated resources from the eight European Development Fund
Date: 2001-10-16
Institutions: European Commission
Subjects: ACP-EU Committee of Ambassadors, European Development Fund, budgetary resources, emergency aid, establishment of peace

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.10.2001
COM(2001) 589 final

2001/0239 (ACC)

Proposal for a

COUNCIL DECISION

on the adoption of the position by the Community within the ACP-EC Committee of
Ambassadors regarding the use of unallocated resources from the eight European
Development Fund

(presented by the Commission)

EXPLANATORY MEMORANDUM

Decision  No  1/2000  of  the  ACP-EC  Council  of  Ministers  of  27 July 20001  laying  down
transitional  measures  for  the  period  from  2 August 2000  until  the  entry  into  force  of  the
Cotonou  Agreement  provides  for  advanced  application  of  the  Agreement  and  continued
application of some of the provisions of the revised fourth Lomé Convention.

Decisions  N°  2/2000  and  N°  3/2000  of  the  ACP-EC  Council  of  Ministers  of  15  December
20002  refer  to  the  granting  of  financial  support  to  an  investment  financing  scheme  for
industrial  and  business  development  in  the  ACP  countries  and  the  definition  of  specific
financial measures to ensure the continuity of certain activities of the 8th EDF before the entry
into force of the ACP-EC Partnership Agreement.

However, there are a certain number of other activities that are not covered explicitly by the
above transitional measures, on which the ACP-EC Council of Ministers must take a decision.
During its meeting on 11 May 2001, the ACP-EC Council of Ministers delegated to the ACP-
EC  Committee  of  Ambassadors  the  power  to  take  such  a  decision,  on  the  basis  of  Articles
195 (b), 219 (2) (d), 245 (2), 257 and 282 (5) of the fourth ACP-EC Convention.

1. 

CENTRE  FOR  THE  DEVELOPMENT  OF  ENTERPRISE  (CDE)/  CENTRE  FOR  THE
DEVELOPMENT OF AGRICULTURE (CTA)

The  ACP-EC  Partnership  Agreement  signed  in  Cotonou  on  23  June  states  that  the
Centre for the Development of Enterprise (CDE) will support the implementation of
private  sector  development  strategies 
the  ACP  countries  by  providing
non-financial  services  to  ACP  companies  and  businesses  and  also  support  to  joint
initiatives set up by Community and ACP traders. The mission of the Centre for the
Development  of  Agriculture  (CTA)  will  be  to  strengthen  policy  and  develop
institutional  capacity  linked  with  information  and  communication  systems  and  also
the information and communication management capacities of ACP agricultural and
rural development organisations.

in 

The Decision mentioned above (N° 1/2000) on the transitional measures provides for
advance application of the provisions concerning the CDE and CTA in Annex III to
the ACP-EC Partnership Agreement. In line with this decision, Decision N° 3/2000
included the allocation of € 22 million for the CDE for the financial year 2001 and €
12 million for the CTA for the same financial year, from unallocated resources from
the 8th EDF, as an advance on the 9th EDF, which has not yet entered into force (in
the  Financial  protocol  of  the  ACP-EC  Partnership  Agreement,  €  90  million  of  the
9th EDF are earmarked for the CDE and € 70 million for the CTA).

Considering  that  the  ratification  of  the  ACP-EC  Partnership  Agreement  and  the
Financial  Protocol  is  unlikely  to  take  place  before  the  beginning  of  2002,  a  new
provision should be taken to cover the 2002 financial year for the CDE and the CTA.
The CDE will need an overall sum of € 23 million to cover the 2002 financial year.
The requirements of the CTA for the same financial year are € 13.7 million. In these
circumstances and in order to make these financial resources available, it is necessary

1 
2 

OJ L 195, 1.8.2000, p. 46.
OJ L 17, 19.1.2001, p. 20 and OJ L 8, 12.1.2001, p. 38

2

                                                
for the ACP-EC Committee of Ambassadors to authorise the use, in the form of an
advance on the 9th EDF, of unallocated resources from the 8th EDF.

2. 

RESOURCES FOR EMERGENCY ASSISTANCE

An  appropriation  of  €  140  million  was  available  for  aid  under  Article  254  of  the
Lomé Convention, which allowed for emergency assistance. However, Article 2 (c)
of the Second Financial Protocol provided that on the expiry of the protocol, save for
a decision to the contrary by the Council of Ministers, these funds would revert to the
assets of the  Fund  for  the  purpose  of  financing  other  operations  coming  within  the
scope of development finance co-operation. Therefore, provision should be made for
maintaining the necessary resources to allow these actions to continue up to the entry
into force of the 9th EDF3.

3. 

PEACE-BUILDING, CONFLICT PREVENTION AND RESOLUTION

The Community and the ACP States have agreed to pursue an active, comprehensive
and  integrated  policy  of  peace-building  and  conflict  prevention  and  resolution.
Within  this  framework  there  is  a  need  to  support  countries,  which  emerge  from
cross-border  conflicts,  in  order  to  consolidate  their  peace  efforts.  It  is  therefore
proposed  to  allocate  resources  to  support  for  conflict  prevention  and  resolution,
especially for demobilisation, and reintegration of former combatants, in accordance
with  Article  11  (2)  and  (3)  of  the  ACP-EC  Partnership  Agreement,  put  into  early
application by Decision N° 1/2000 of the ACP-EC Council of Ministers.

4. 

ADDITIONAL RESOURCES FOR INTRA-ACP PROJECTS AND PROGRAMMES

Article  164  (1)  (d)  of  the  revised  fourth  Lomé  Convention  established  a  basis  for
actions  relating  to  intra-ACP  regional  co-operation.  Such  actions  are  intended  to
support  the  development  of  all  ACP  countries,  either  through  support  for  ACP
institutions,  or  through  support  in  certain  thematic  areas.  Insufficient  funds  remain
allocated to this co-operation to allow the continuation of such activities in 2001 and
2002. Additional resources would be used for activities in the fields of reproductive
health and private sector support.

Reproductive  health:  in  signing  up  to  the  International  Development  Targets,  now
referred  to  as  Millennium  Development  Goals,  the  international  community,
including  the  European  Community,  has  committed  itself  to  reducing  maternal
deaths by 75% by 2015. A sub-target is to increase the proportion of births attended
by a skilled attendant to 80% by 2005. The reproductive health allocation would be
used for targeted activities in ACP countries with high maternal mortality rates. The
EC  support  aims  to  strengthen  government  responses  to  sexual  and  reproductive
health  needs;  to  ensure  consistent,  affordable  and  high  quality  services  and
commodity  supplies;  and  to  strengthen  the  role  of  in-country  non-governmental
partners.  Priority  interventions  will  include  essential  obstetric  care  for  life
threatening emergencies and skilled attendance at delivery, underpinned by access to
family  planning  and  management  of  unwanted  pregnancies.  In  order  to  achieve

3 

On July 26th, uncommitted balances of the appropriation for emergency assistance were € 11.4 million.

3

                                                
sustainable improvements in these elements, the design of policies and interventions
shall aim at the improved functioning of health systems as a whole.

Private  sector  support:  this  allocation  would  be  used  for  the  continuation  of  the
following programmes:

– 

– 

– 

The  EU-ACP  Business 
increasing
competitiveness  of  ACP  enterprises  and  strengthening  capacity  of  private
sector  and  non-financial  intermediaries  through  better  access  to  effective
business development services.

assistance 

scheme, 

aiming 

at 

DIAGNOS, which provides assistance to ACP national and regional authorities
in  the  analysis  of  the  private  sector  conditions  in  ACP  countries  and  in  the
preparation of private sector development policies and operations.

The  EU-ACP  Business  forum,  which  facilitates  dialogue  with  the  private
sector.

For  all  these  reasons,  the  Commission  is  proposing  that  the  Council  adopt  the  attached
decision on the position to be adopted by the Community within the ACP-EC Committee of
Ambassadors  regarding  a  decision  on  the  use  of  unallocated  resources  from  the  8th  EDF.

4

2001/0239 (ACC)

Proposal for a

COUNCIL DECISION

on the adoption of the position by the Community within the ACP-EC Committee of
Ambassadors regarding the use of unallocated resources from the eight European
Development Fund

THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Article 310 in conjunction with the second subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) 

(2) 

Decision no  1/2000 of  the ACP-EC  Council  of Ministers of  27 July 2000  laid down
transitional  measures  for  the  period  from  2  August  2000  until  the  ratification  of  the
Cotonou Agreement. Article 2 of that decision indicates that provisions of the fourth
Lomé  convention  as  revised  by  the  Agreement  signed  in  Mauritius  on  4  November
1995,  regarding  the  ACP-EC  Council  of  Ministers’  power  of  decision  on  the  use  of
unallocated resources from the 6th, 7th and 8th EDFs, remains applicable.

The ACP-EC Council of Ministers on 11 May 2001 delegated the power to decide on
the use of unallocated resources from the Eighth European Development Fund to the
ACP-EC Committee of Ambassadors, on the basis of Articles 195 (b), 219 (2) (d), 245
(2),  257  and  282  (5)  of  the  revised  Fourth  Lome  Convention  and  Article  2  (e)  of
Decision  N°  1/2000  of  the  ACP-EC  Council  of  Ministers  regarding  transitional
measures.

(3) 

The  position  of  the  Community  within  the  ACP-EC  Committee  of  Ambassadors
should be set out with a view to the adoption by the latter of a decision on the use of
unallocated resources from the eighth EDF.

HAS DECIDED AS FOLLOWS:

Article 1

The position taken by the Community within the ACP-EC Committee of Ambassadors on the
use  of  unallocated  resources  from  the  8th  EDF  shall  be  based  on  the  draft  decision  of  the
ACP-EC Committee of Ambassadors attached as annex.

5

Article 2

Minor changes to the draft decision may be agreed without any need for a further decision by
the Council.

Done at Brussels,

For the Council
The President

6

ANNEX

DRAFT

DECISION OF THE ACP-EC COMMITTEE OF AMBASSADORS

on the use of unallocated resources from the Eighth European Development Fund

THE ACP-EC COMMITTEE OF AMBASSADORS,

Having  regard  to  the  Fourth  ACP-EC  Convention,  as  amended  by  the  Agreement  signed  in
Mauritius on 4 November 1995, in particular Articles 195 (b), 219 (2) (d), 245 (2), 257 and
282 (5) thereof,

Having regard to the ACP-EC Partnership Agreement, signed in Cotonou on 23 June 2000,

Whereas:

1. 

2. 

3. 

4. 

5. 

With Decision no 1/2000, the ACP-EC Council of Ministers on 27 July 2000 adopted
transitional measures for the period from 2 August 2000 until the ratification of the
ACP-EC  Partnership  Agreement,  envisaging  the  anticipated  application  of  certain
provisions  of  the  Partnership  Agreement  as  well  as  the  continued  application  of
certain provisions of the fourth Lomé convention as revised by the Agreement signed
in  Mauritius  on  4  November  19954.  Article  2  of  that  decision  indicates  that
provisions  of  the  Lomé  Convention,  regarding  the  ACP-EC  Council  of  Ministers’
power  of  decision  on  the  use  of  unallocated  resources  from  the  6th,  7th  and  8th
EDFs, remain applicable.

The ACP-EC Council of Ministers on 11 May 2001 delegated the power to decide on
the use of unallocated resources from the Eighth European Development Fund to the
ACP-EC  Committee  of  Ambassadors,  on  the  basis  of  Articles  195(b),  219(2)(d),
245(2), 257 and 282 (5) of the revised Fourth Lome Convention and Article 2(e) of
Decision  N°  1/2000  of  the  ACP-EC  Council  of  Ministers  regarding  transitional
measures.

To  ensure  the  continuation  of  the  activities  of  the  Centre  for  the  Development  of
Enterprise  (CDE)  and  the  Centre  for  the  Development  of  Agriculture  (CTA),  the
necessary funds should be made available to cover the financial requirements for the
2002 financial year.

To  ensure  that  the  Community  continues  the  delivery  of  emergency  assistance  as
referred  to  in  article  254  of  the  revised  ACP-EC  Convention  it  is  appropriate  to
maintain the allocation foreseen in Article 2 (a) of the Second financial protocol.

To  ensure  that  the  Community  contributes  to  efforts  of  peace-building,  conflict
prevention  and  resolution,  especially  by  facilitating  the  demobilisation  and
reintegration  of  former  combatants,  it  is  appropriate  to  create  an  allocation  to  this
effect.

4 

OJ L 195, 1.8.2000, p. 46.

7

                                                
6. 

To  ensure  the  financing  of  certain  activities  it  is  appropriate  to  allocate
supplementary resources to intra-ACP regional co-operation, particularly in favour of
reproductive health and private sector support.

HAS DECIDED AS FOLLOWS:

Article 1 – CDE/CTA

1. 

The following shall  be taken  from unallocated  8th EDF resources  (general  reserve),
as an advance on the 9th EDF:

–  A maximum of € 23 million to finance the CDE budget in 2002

–  A maximum of € 13.7 million to finance the CTA budget in 2002

2. 

Any unexpended balances from the funds for the CDE and the CTA not used for the
2002 financial year shall be automatically carried over to the 2003 financial year.

Article 2 – Emergency assistance

Until  the  entry  into  force  of  the  Financial  Protocol  of  the  Partnership  Agreement,
uncommitted balances of the allocation for emergency assistance as referred to under Article
254  of  the  amended  Fourth  ACP-EC  Convention  and  Article  2  (a)  of  its  Second  Financial
Protocol shall remain allocated to emergency assistance.

Article 3 – Peace-building, conflict prevention and resolution

An  amount  of  €  50  million  shall  be  taken  from  unallocated  8th  EDF  resources  (general
reserve)  for  actions  in  the  field  of  peace-building,  conflict  prevention  and  resolution,  in
accordance with Article 11(2)-(3) of the ACP-EC Partnership Agreement.

Article 4 – Intra-ACP

An  amount  of  €  94  million  shall  be  taken  from  unallocated  8th  EDF  resources  (general
reserve) for the use of intra-ACP regional co-operation. Within this amount, € 44 million shall
be a specific allocation for a new initiative in the field of reproductive health and € 50 million
shall be a specific allocation for private sector development.

The Chief Authorising Officer of the EDF is requested to take the measures necessary to give
effect to this Decision, which shall enter into force on the day it is adopted.

Article 5

Done at

For the ACP-EC Committee of Ambassadors
The President

8