Proposal for a Council Decision concluding consultations with Guinea-Bissau under Article 96 of the Cotonou Agreement
Date: 2004-06-10
Institutions: European Commission
Subjects: Guinea-Bissau, cooperation policy, democratisation, development aid, the EU's international role

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.6.2004 
COM(2004) 423 final 

Proposal for a 

COUNCIL DECISION 

concluding consultations with Guinea-Bissau under Article 96 of the Cotonou 
Agreement 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On  19  January  2004  the  European  Union  opened  consultations  with  Guinea-Bissau  under 
Article 96 of the Cotonou Agreement following the military coup of 14 September 2003. 

This  coup  is  incompatible  with  the  essential  elements  specified  in  Article  9  of  the  Cotonou 
Agreement.  

At  the  opening  meeting  of  these  consultations  the  European  Union  was  pleased  to  note  the 
undertakings  given  by  Guinea-Bissau’s  representatives  concerning  the  restoration  of  a 
constitutional order consistent with human rights, democratic principles and the rule of law, 
and  the  establishment  of  conditions  conducive  to  the  country’s  political  stability  and 
sustainable development. 

The  European  Union  takes  note  of  a  series  of  undertakings  by  the  government  of 
Guinea-Bissau, confirming: 

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– 

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the  government’s  transition  programme,  and  in  particular  its  plans  for  a  general 
election; 

the  progress  towards  a  return  to  an  independent  judiciary  and  the  restoration  of 
civilian control over the armed forces. 

the adoption of measures to consolidate public finances. 

In their conclusions, the European Union also stated that: 

“The European Union will continue the dialogue to make sure that democracy and the rule of 
law  are  restored  as  quickly  as  possible  in  Guinea-Bissau,  this  being  a  prerequisite  for  the 
comprehensive normalisation of its cooperation ties with the country. These consultations will 
be  conducted  in  the  hope  of  helping  establish  a  viable  constitutional  order  offering 
Guinea-Bissau the stability it needs to make inroads into poverty, contribute to stability in the 
region and integrate itself further into the international economy.  

On  the  basis  of  the  monthly  reports  that  Guinea-Bissau  has  pledged  to  provide  on  the 
implementation of the above undertakings, the European Union will monitor developments in 
the situation very closely. It will see that undertakings are honoured, especially those relating 
to  the  scheduled  elections  and  the  adoption  of  measures  guaranteeing  the  transparency  and 
democratic legitimacy of the elections, the implementation of the emergency programme, the 
progress  towards  the  consolidation  of  public  finances,  and  the  return  to  an  independent 
judiciary and the restoration of civilian control over the armed forces. 

The  nature  and  scope  of  any  appropriate  steps  adopted  pursuant  to  Article 96(2)(c)  of  the 
Cotonou Agreement at the end of the three-month period of dialogue and consultations on the 
ground  will  very  much  depend  on  whether  and,  if  so,  how  the  authorities  of  Guinea-Bissau 
honour  their  undertakings.  It  emphasises  that  the  full  cooperation  of  the  authorities  of 
Guinea-Bissau is crucial if it is to continue assisting this country’s development efforts.” 

This intensive dialogue has taken place in Guinea-Bissau. It was based on a list of measures 
to  be  taken  with  a  view  to  honouring  undertakings  and  on  the  monthly  monitoring  reports 
presented  to  the  local  representatives  of  the  Presidency  and  the  Commission.  Following  the 

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dialogue,  an  evaluation  of  the  implementation  of  those  undertakings  was  drawn  up  by  the 
Presidency and the Commission’s local representatives. 

According  to  this  report,  Guinea-Bissau’s  authorities  have  taken  measures  which  are  both 
significant and encouraging in relation to certain undertakings, and in particular: 

•  the holding of a fair, free and transparent general election on 28 and 30 March 2004; 

•  confirmation of progress towards a return to an independent judiciary with the appointment 

of a public prosecutor and the election of the supreme court president. 

There nevertheless remain issues of concern in particular, with regard to the consolidation of 
public finances: 

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The public accounting system needs to be completely overhauled. Public finances are 
steadily worsening because a considerable percentage of government revenue, and in 
particular customs revenue, is not being properly collected. 

The  government’s  finances  remain  a  matter  of  great  concern.  A  shortage  of  cash 
means that most officials are being paid with development partners’ contributions to 
a UNDP-managed fund.  

Implementation of the emergency economic programme adopted by the transitional 
government must continue.  

The census of government employees now under way must continue. 

Corrective  measures  must  be  adopted  in  the  matter  of  public  finances,  including 
audits of the financial control system, public procurement and government revenue. 

The repayment of Community budgetary support in the wake of the 2003 audit into 
the use of the programme’s resources must go ahead. 

Following submission of the conclusions of the government auditors’ 2003 report on 
government  revenue,  administrative  and  judicial  proceedings  should  be  initiated 
against  officials  of  the  government  preceding  the  transition  period  who  committed 
irregularities or fraud. 

Overall,  the  European  Union  considers  that  progress  is  being  made  towards  a  return  to 
constitutional  rule.  There  remains  some  uncertainty  as  to  how  the  government  intends  to 
consolidate public finances.  

In  the  wake  of  the  consultations,  the  Commission  proposes,  by  way  of  appropriate  steps 
within the meaning of Article 96(2)(c) of the Cotonou Agreement, to normalise relations and 
continue cooperation while monitoring, over a period of eighteen months, the progress made 
in  the  areas  of  public  finances,  the  return  to  an  independent  judiciary,  the  restoration  of 
civilian  control  over  the  armed  forces  and  the  pursuit  of  the  electoral  calendar  with  the 
presidential elections. This period could see six-monthly evaluations. 

Close  political  dialogue  must  continue  with  Guinea-Bissau’s  government,  to  ensure  that  it 
keeps  up  its  efforts  to  restore  the  rule  of  law  and  bring  social  and  economic  stability  to 
Guinea-Bissau. 

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Should the authorities of Guinea-Bissau fail to honour their undertakings, the European Union 
reserves the right to take the appropriate measures. In particular, the European Commission 
could,  at  the  end  of  the  eighteen-month  period  referred  to  above,  reallocate  uncommitted 
financial resources allocated to Guinea-Bissau under the 9th EDF. 

In  the  light  of  the  above  and  pursuant  to  Articles  9  and  96  of  the  Cotonou  Agreement,  the 
Commission  proposes  that  the  Council  conclude  the  consultations  with  Guinea-Bissau  and 
adopt the annexed Decision. 

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Proposal for a 

COUNCIL DECISION 

concluding consultations with Guinea-Bissau under Article 96 of the Cotonou 
Agreement 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to  the ACP-EC  Partnership Agreement signed at  Cotonou  on  23 June 20001, 
and in particular article 96 thereof, 

Having  regard  to  the  internal  agreement  on  measures  to  be  taken  and  procedures  to  be 
followed  for  the  implementation  of  the  ACP-EC2Partnership  Agreement,  and  in  particular 
Article 3 thereof, 

Having regard to the proposal from the Commission,3 

Whereas: 

(1) 

(2) 

(3) 

The essential elements cited in Article 9 of the Cotonou Agreement were violated by 
the  military  coup  of  14  September 2003  in  Guinea-Bissau,  as  condemned  by  the 
European Union in a statement of 18 September 2003. 

Pursuant  to  Article  96  of  the  Cotonou  Agreement,  consultations  were  held  on 
19 January 2004 with the ACP countries and Guinea-Bissau, at which Guinea-Bissau’s 
authorities gave specific undertakings aimed at remedying the problems set out by the 
European Union and to be implemented during a period of intensive dialogue lasting 
three months. 

At the end of this period, a number of practical measures were found to have resulted 
from the above undertakings; nevertheless, certain important measures concerning the 
essential  elements  of  the  Cotonou  Agreement  have  still  not  been  adequately 
implemented in practice, 

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3 

JO L 317 of 15 Dec 2000, Page 3 
JO L 317 of 15 Dec 2000, Page 376 
JO C of , Page  

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HAS DECIDED AS FOLLOWS: 

Article 1 

Consultations  with  the  Republic  of  Guinea-Bissau  pursuant  to  Article  96  of  the  Cotonou 
Agreement are hereby concluded. 

The  measures  specified  in  the  annexed  draft  letter  are  hereby  adopted  as  appropriate  steps 
within the meaning of Article 96(2)(c) of the Cotonou Agreement. 

Article 2 

Article 3 

This Decision shall enter into force on the day of its adoption. 

It shall be valid for 18 months from the date of its adoption by Council. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  

Draft letter 

Sir, 

The European Union  places great  importance on the provisions  of Article 9 of  the Cotonou 
Agreement.  The  ACP-EU  partnership  is  founded  on  respect  for  human  rights,  democratic 
principles and the rule of law; these are essential elements of the above agreement, and thus 
form the basis for relations between us. 

In this spirit the European Union, in its statement of 18 September 2003, roundly condemned 
the military coup of 14 September 2003.  

The EU Council therefore decided on19 December 2004 to invite Guinea-Bissau’s authorities 
to enter into consultations with a view to a thorough examination of the situation and finding 
ways of remedying it. 

These  consultations  took  place  in  Brussels  on  19  January  2004.  Several  fundamental 
questions were addressed, and the Prime Minister of the transitional government was able to 
present  the  point  of  view  of  Guinea-Bissau’s  authorities  and  their  analysis  of  the  situation. 
The European Union took note of the Prime Minister’s committements to: 

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– 

– 

confirm 
Guinea-Bissau, and in particular its plans for a general election; 

transition  programme  of 

the  government  of 

the 

the  Republic  of 

adopt measures to consolidate public finances; 

confirm progress towards a return to an independent judiciary and the restoration of 
civilian control over the armed forces. 

It was also agreed that an intensive dialogue would be held in Guinea-Bissau over a period of 
three months on the various points raised, and that the situation would be assessed at the end 
of this period. 

This regular and intensive dialogue has been held in Guinea-Bissau. It focused on a series of 
measures intended to fulfil the undertakings given. 

A  number  of  significant  measures  have  been  taken  by  the  authorities  of  Guinea-Bissau.  In 
particular, we note that: 

•  a fair, free and transparent general election was held on 28 and 30 March 2004; 

•  progress has been made towards a return to an independent judiciary with the appointment 

of a public prosecutor and the election of the supreme court president. 

These initiatives are definitely signs of the country’s social and political stabilisation. There 
nevertheless  remain  issues  of  concern,  especially  with  regard  to  the  consolidation  of  public 
finances,  and  in  particular  public  accounting,  the  collection  of  customs  revenue  and  the 
payment of the majority of government employees.  

The European Union attaches particular importance to the following measures to consolidate 
public finances: 

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•  continuing  implementation  of  the  emergency  economic  programme  adopted  by  the 

transitional government; 

•  the continuation of the current census of government employees; 

•  the adoption of corrective measures in the matter of public finances, including audits of the 

financial control system, public procurement and government revenue; 

•  the repayment of Community budgetary support following the 2003 audit into the use of 

resources; 

•  the submission of the conclusions of the government auditors’ 2003 report on government 

revenue; 

•  the  continuation  of  administrative  and  judicial  proceedings  against  officials  of  the 

government preceding the transition period who committed irregularities or fraud. 

In  the  wake  of  the  consultations,  it  was  decided  by  way  of  appropriate  steps  within  the 
meaning  of  Article  96(2)(c)  of the Cotonou Agreement, to normalise relations and continue 
cooperation while monitoring, over a period of eighteen months, progress made in the areas of 
public finances, the return to an independent judiciary, the restoration of civilian control over 
the  armed  forces  and  the  pursuit  of  the  electoral  timetable  with  the  presidential  elections. 
Conditions should be provided in time to ensure that the Presidential elections are transparent 
and genuinely democratic. The European Commission will perform six-monthly evaluations 
during this period. 

Close  political  dialogue  with  your  government  must  continue  in  order  to  help  consolidate 
democracy in your country. 

Should the authorities of Guinea-Bissau fail to honour their undertakings, the European Union 
reserves  the  right  to  take  appropriate  measures.  In  particular,  the  European  Commission 
couldat  the  end  of  the  eighteen-month  period  referred  to  above,  reallocate  uncommitted 
financial resources allocated to Guinea-Bissau under the 9th EDF. 

I have the honour to be, Sir, yours faithfully, 

For the Commission  For the Council 

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