Proposal for a Council Decision adjusting the financial resources of the 9th European Development Fund further to the accession of the Democratic Republic of Timor-Leste to the ACP-EC Partnership Agreement
Date: 2004-09-27
Institutions: European Commission
Subjects: East Timor, European Development Fund, Member States' contribution, accession to an agreement, association agreement (EU), development aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.9.2004 
COM(2004) 610 final 

Proposal for a 

COUNCIL DECISION 

adjusting the financial resources of the 9th European Development Fund  
further to the accession of the Democratic Republic of Timor-Leste  
to the ACP-EC Partnership Agreement 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
  
EXPLANATORY MEMORANDUM 

On  16  May  20031,  Timor-Leste  was  accepted  as  a  signatory  to  the  ACP-EC  Partnership 
Agreement, hereinafter called the Cotonou Agreement. The Decision of the ACP-EC Council 
of  Ministers  approving  accession  stipulated  that  Timor-Leste  would  not  have  immediate 
access  to  the  resources  of  the  9th  European  Development  Fund  (EDF),  but  would  only 
benefit, as a temporary special arrangement, from funds earmarked for regional cooperation.  

The  Joint  Council  Decision  did  not  take  account  of  the  fact  that  after  ratification  of  the 
Cotonou  Agreement,  Timor-Leste  will  no  longer  qualify  for  the  development  assistance 
which has been provided until now under Council Regulation 443/92 (the ALA Regulation)2. 
So far Timor-Leste has not ratified the Cotonou Agreement. 

In  order  to  enable  Timor-Leste  to  ratify  and  become  a  full  Party  to  the  Agreement,  the 
Commission  proposes  to  make  funds  available  from  the  9th  EDF  to  meet  the  development 
needs of Timor-Leste until the successor to the 9th EDF enters into force. 

Article 1 of the Financial Protocol to the Cotonou Agreement lays down the overall amount of 
the  Community’s  financial  assistance  to  the  ACP  States  which  originally  signed  the 
Agreement.  Since  Council  Decision  No  1/2003  of  16  May  2003  approved  the  accession  of 
Timor-Leste  to  the  Cotonou  Agreement  and  since,  pursuant  to  Article  94(1)  of  that 
Agreement,  the  accession  of  a  State  may  not  infringe  on  the  benefits  enjoyed  by  the  ACP 
States  signatory  to  the  said  Agreement  under  the  provisions  on  development  cooperation 
financing,  the  Commission  proposes  that  the  EU  Council  of  Ministers,  in  accordance  with 
Article 62(2)(a) of the Cotonou Agreement3 and Article 1(5) of the Internal Agreement on the 
Financing and Administration of Community Aid under the Financial Protocol to the ACP-EC 
Partnership  Agreement  (2000/770/EC)4,  adjust  the  overall  amount  of  the  Community’s 
financial assistance to the ACP States under the 9th EDF to allow Timor-Leste to benefit from 
EDF funds for the rest of the period covered by the 9th EDF. 

In order to maintain the level of assistance to be committed for Timor-Leste in 2005 under the 
ALA Regulation, namely €9 million, the financial resources required to cover Timor-Leste’s 
development needs during the transition period until the successor to the 9th EDF enters into 
force are estimated at €18 million. 

1 

2 

3 

4 

EN 

Decision  No  1/2003  of  the  ACP-EC  Council  of  Ministers  of  16  May  2003  regarding  the  accession  of  the 
Democratic Republic of Timor-Leste to the ACP-EC Partnership Agreement (O.J. L 141, 7.6.2003, p.25) 
Article 1 of the ALA Regulation: “The Community shall continue and broaden Community cooperation with the 
Asian and Latin American developing countries, hereinafter referred to as ‘the ALA developing countries’, which 
are  not  signatories  to  the  Lomé  Convention  (or  mutatis  mutandis  of  the  Cotonou  Agreement)  and  do  not  benefit 
from the Community’s cooperation policy with Mediterranean third countries….”. 
“…..  Adjustment  of  the  financial  resources  shall  (also)  apply  upon  the  accession  to  the  Agreement  of  new  ACP 
States”.  
“Financial  resources  may  also  be  adjusted,  by  a  decision  of  the  Council  acting  unanimously,  in  accordance  with 
Article 62-(2) of the ACP-EC Partnership Agreement”. 

2 

   EN 

 
                                                 
Proposal for a 

COUNCIL DECISION 

adjusting the financial resources of the 9th European Development Fund  
further to the accession of the Democratic Republic of Timor-Leste  
to the ACP-EC Partnership Agreement 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to the proposal from the Commission5, 

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

Having regard to the Internal Agreement between representatives of the Governments of the 
Member  States,  meeting  within  the  Council,  on  the  Financing  and  Administration  of 
Community Aid under the Financial Protocol to the ACP-EC Partnership Agreement, and in 
particular Article 1(5) thereof,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

By Decision No 1/2003 of the ACP-EC Council of Ministers of 16 May 2003, Timor-
Leste  became  a  signatory  to  the  ACP-EC  Partnership  Agreement.  This  Decision 
stipulated that Timor-Leste would not have immediate access to the resources of the 
9th  European  Development  Fund  (EDF)  but  would  only  benefit,  as  a  temporary 
special arrangement, from funds earmarked for regional cooperation. 

The  Council  Decision  did  not  take  into  account  the  fact  that  after  ratification  of  the 
Cotonou  Agreement,  Timor-Leste  will  no  longer  qualify  for  the  development 
assistance  which  has  been  provided  until  now  under  Council  Regulation  443/92  (the 
ALA Regulation). 

Article  94(1),  third  paragraph,  of  the  ACP-EC  Partnership  Agreement  states  that  a 
State  acceding  to  this  Agreement  shall  enjoy  the  same  rights  and  be  subject  to  the 
same  obligations  as  the  ACP  States.  Its  accession  may  not  infringe  on  the  benefits 
enjoyed  by  the  ACP  States  signatory  to  the  Agreement  under  the  provisions  on 
development cooperation financing. 

Article 62(2)(a) states that the Parties shall adjust the amounts of resources provided 
for in the Financial Protocol set out in Annex I after the accession to the Agreement of 
new ACP States which did not take part in its negotiation. Article 1(5) of the Internal 
Agreement  states  that  financial  resources  may  also  be  adjusted,  by  a  decision  of  the 

5 

OJ C , , p. . 

EN 

3 

   EN 

 
                                                 
Council  acting  unanimously,  in  accordance  with  Article  62(2)  of  the  ACP-EC 
Partnership Agreement. 

(5) 

(6) 

In  order  to  enable  Timor-Leste  to  ratify  the  ACP-EC  Agreement  and  become  a  full 
Party  to  the  Agreement,  it  is  proposed  to  make funds available from  the 9th EDF to 
meet the development needs of Timor-Leste until the successor to the 9th EDF enters 
into force. 

The financial resources which would be required to cover Timor-Leste’s development 
needs during the transition period until the successor to the 9th EDF enters into force 
are estimated at €18 million.  

HAS DECIDED AS FOLLOWS: 

Article 1 

The Member States shall adjust the financial resources of the 9th EDF stated in Article 1 of 
the Internal Agreement, increasing them by €18 million. 

This amount will be constituted by the following contributions from Member States: 

Member State 

Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Austria 
Portugal 
Finland 
Sweden 
United Kingdom 

Contribution in 
million EUR 

0,71 
0,39 
4,20 
0,23 
1,05 
4,37 
0,11 
2,26 
0,05 
0,94 
0,48 
0,17 
0,27 
0,49 
2,28 
18,00 

Article 2 

This Decision shall enter into force on the day of its adoption. It shall be communicated to the 
ACP Council of Ministers. 

Done at Brussels,  

EN 

For the Council 
The President 

4 

   EN