WRITTEN QUESTION E-0529/02 by Charles Tannock (PPE-DE) to the Commission. Conditions attached to EU aid.
Date: 2002-02-25
Institutions: European Parliament, Provisional data
Subjects: EU Member State, EU aid, aid system, developing countries, equal treatment, public contract, terms for aid

C 277 E/58

Official Journal of the European Communities

EN

14.11.2002

(2002/C 277 E/061)

WRITTEN QUESTION E-0529/02

by Charles Tannock (PPE-DE) to the Commission

(25 February 2002)

Subject: Conditions attached to EU aid

Commissioner Patten has expressed concern about the implications for recipients of EU aid of conditions
specifying where this money must be spent.

What is the cost to developing countries of insisting that aid must be spent within the EU? Is it also
correct that some Member States insist that purchases be made only within those states, and, if so, how is
that consistent with the EU’s own Competition Policy requirements?

Answer given by Mr Nielson on behalf of the Commission

(18 April 2002)

According to the World Bank’s estimates, the untying of bilateral aid could increase the efficiency of aid by
up to 25 %. Community aid would be less affected since the Commission already tenders in the 15
Member States, and the framework agreements that the Union has established with developing countries
have already anticipated this potential by opening-public procurement under Community co-operation to
entities from the recipient countries.

Despite the fact that the DAC Recommendations unfortunately cover only 2 % of the total of ODA, the
Commission has committed itself to implement the recommendations. Indeed the Commission’s approach
goes further than these recommendations as it covers all Developing Countries, and includes food aid and
technical assistance.

The Commission has launched a step by step approach to implementing this which is based on
partnership and regional integration. This process aims at opening EU co-operation as a first step to all
developing countries on a regional basis; in a second step to all developing countries; and in a third step to
all countries including other donors on the basis of reciprocity. Horizontal budget lines are currently being
opened to all developing countries. Changes will be proposed to the appropriate legal framework to
achieve this.

As for the approach of some of the Member States to their own bilateral aid, Community internal market
rules apply to the conditions attached to aid, except where the tender is organised by a Member State on
behalf of the recipient. According to the Directives on Public Procurement (1), Community individuals must
have equal access to and equal treatment in public procurement within the Union.

The Conclusions of the Council in view of the International Conference on Financing for Development
stipulate that the Member States shall continue the discussion in view of a further untying of bilateral aid.

(1) Council Directive 93/36/EEC of 14 June 1993 coordinating procedures for the award of public supply contracts,
OJ L 199, 9.8.1993Council Directive 93/37/EEC of 14 June 1993 concerning the coordination of procedures for
the award of public works contracts, OJ L 199, 9.8.1993. Council Directive 93/38/EEC of 14 June 1993
coordinating the procurement procedures of entities operating in the water, energy, transport and telecommuni-
cations sectors OJ L 199, 9.8.1993. Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of
procedures for the award of public service contracts, OJ L 209, 24.7.1992.