Proposal for a Council Decision repealing Council Decision 2001/131/EC concluding the consultation procedure with Haiti under Article 96 of the ACP-EC Partnership Agreement
Date: 2005-08-09
Institutions: European Commission
Subjects: Haiti, cooperation agreement (EU), democracy, economic sanctions, public safety

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 09.08.2005 
COM(2005) 367 final 

Proposal for a 

COUNCIL DECISION 

repealing Council Decision 2001/131/EC concluding the consultation procedure with 
Haiti under Article 96 of the ACP-EC Partnership Agreement 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The Article 96 Decisions 

Following  the  flawed  elections  of  2000,  and  considering  the  situation  in  Haiti  as  non-
complying  with  the  democratic  principles  of  the  Cotonou  agreement,  the  Council  of  the 
European  Union  decided  on  29  January  2001,  in  accordance  with  Article  96(2)(c)  of  the 
Cotonou  Agreement,  to  adopt  appropriate  measures  according  to  which  aid  to  Haiti  was 
partially suspended (no direct budget support to the Haitian Government), no notification of 
the 9th EDF funds (€239 million) and the remaining funds under the 8th EDF (€84.4 million) 
were  redirected  to  the  direct  benefit  of  the  Haitian  people.  The  EU  conditioned  the 
normalisation  of  its  relations  with  Haiti  to  the  fulfilment  of  the  conditions  and  measures 
foreseen in the OAS Resolution 822 in regard with the organisation of free and fair elections. 

The  2001  Decision  was  reviewed  and  effectively  reconducted  by  Decision  2002/131/EC  on 
21  January  2002,  Decision  2003/53/EC  on  10  January  2003  and  Decision  2003/916/EC  on 
22 December 2003.  

The  political  situation  in  Haiti  changed  dramatically  in  2004  with  the  departure  of  then 
President Aristide. The rapid political developments, (the highlights of which are summarised 
below),  necessitated  a  substantial  review  of  the  situation  and  Decision  2004/681/EC 
modifying  Decision  2001/131/EC  was  adopted  on  24  September  2004.  It  is  valid  till 
31 December 2005, but requires a review after six months. This Decision effectively lifted all 
earlier  measures  (releasing  €95.6 million)  with  the  sole  exception  of  the  signature  of  the 
9th EDF National Indicative Programme (€72 million) which would take place after national 
elections had been held in accordance with resolution 822 of the OAS and judged free and fair 
by the competent Haitian institutions and the international Community. 

It  is  now  considered  that  the  progression  of  the  transition  period  towards  a  democratically 
elected  government  that  started  with  the  installation  of  an  interim  Government  in  2004  and 
will lead to local, legislative and presidential elections in the fall of 2005, warrants a review 
of the current decision and a lifting of the remaining measures as presented below, which will 
constitute  a  concrete  support  to  the  transitional  Government  in  this  difficult  period  and  an 
encouragement to respect the electoral process. 

Background elements 

In early 2004, a protracted period of violence and bloodshed led to the departure of President 
Aristide on 29 February 2004. Supreme Court Chief Justice Boniface Alexandre was sworn in 
as  Interim  President  and  an  Interim  Government,  led  by  Gerard  Latortue  was  sworn  in  on 
17 March 2004. The interim Government has committed itself to free and fair elections within 
18  months.  The  current  plan  is  to  hold  elections  in  the  autumn  of  2005;  local  elections  on 
9 October  2005,  then  legislative  (parliamentary  elections)  and  Presidential  elections  in  two 
rounds on 13 November and 18 December 2005 in order to allow the elected President to take 
office  on  7  February  2006.  The  Interim  Government  of  Haiti  has  committed  itself  to  give 
increased priority to the restoration of a climate of security and of confidence in the country, 
which is considered crucial to democratisation in the country.  

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UN  Resolutions  dated  29  February  2004  and  30  April  2004,  approved  respectively  the 
creation  of  a  Multinational  Interim  Force  followed  by  a  Stabilisation  Force  (MINUSTAH), 
which took over on June 1 under Brazilian leadership, to help stabilise the security situation 
and support the interim Government in the democratisation process. MINUSTAH’s mandate 
has  been  extended  till  end  of  June  2005  pending  discussions  in  the  Security  Council  for  a 
lengthier extension probably for a 12-month period. 

Following  informal  consultations  in  May  2004,  requested  by  the  Council,  PM  Latortue 
addressed  a  letter  to  then  Commissioner  for  Development  Mr  P.  Nielson,  outlining  his 
government’s  commitments  for  the  transition  period  on  several  fronts.  In  April  2005  the 
Commission  presented  to  the  Council  ACP  Group  a  report  in  accordance  with  the 
requirements  of  the  Decision  for  a  review  after  six  months.  The  report  was  prepared  in 
association with the Embassies of the EU MS in Port au Prince which presents the situation 
vis-à-vis these commitments. In March 2005 Commissioner L. Michel visited Haiti and had 
extensive consultations to assess the situation on the ground. The UN Security Council sent a 
mission  to  Haiti  in  April  2005  and  the  UN  Secretary  General  presented  a  report  on  the  UN 
Stabilisation Mission to Haiti in May 2005. All the above reports paint a generally similar 
picture of the situation in Haiti. 

Current Situation  

On the political front, the National Dialogue and Reconciliation process has been launched 
on  April  7.  The  inclusiveness  of  this  dialogue  remains  of  some  concern  as  the  party  of 
ex-President  Aristide  continues  to  refuse  to  be  involved,  notwithstanding  the  President’s 
reported reaching out to get the Lavalas to participate. A number of small political parties are 
gradually grouping into bigger political entities in view of the upcoming elections. 

The Electoral calendar, mentioned above, is reportedly progressing. Elections are the direct 
responsibility  of  the  CEP  —  Conseil  Electoral  Provisoire  —  closely  supported  by 
MINUSTAH.  The  UNDP  and  the  OAS  are  coordinating  assistance  for  the  organisation  of 
elections, the latter particularly in the field of voter registration. The elections overall budget 
is currently US$ 62 million and is to be covered by donors. The EU has pledged a total of €18 
million. The Commission is preparing to field an Observation Mission for the elections. The 
funding for the Observation Mission is additional to the aforesaid €18 million. 

The  security  situation  remains  precarious  and  a  cause  of  grave  concern  with  recurrent 
upsurges of violence, killings, kidnappings and armed robberies. The Haitian National Police 
is too weak and has not had time to readjust from its corrupt past to make a significant impact 
on the security situation. Consequently MINUSTAH is providing much support and trying to 
maintain  control.  It  is  clear  that  MINUSTAH  mandate  and  resources,  both  human  and 
material  need  to  be  reinforced  to  allow  it  to  become  more  effective  and  such  proposals  are 
currently under discussion in the UNSC.  

In the area of Human Rights there is some improvement, as the human rights violations that 
were  policy  of  the  previous  Government  are  certainly  not  part  of  the  Interim  Governments 
discourse.  Nevertheless  the  proliferation  of  armed  gangs  in  the  country  and  a  culture  of 
impunity,  which  exists  due  to  corrupt  individuals  in  the  security  forces  and  the  extreme 
weakness  in  the  judicial  system,  are  drawbacks  in  the  efforts  towards  significant 
improvements in the human rights area. The EC is working on a programme to strengthen the 
Justice system together with the CIDA, while other donors, including EU MS are also active 
in that direction. 

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Some operations, still relatively sporadic, of disarmament of armed groups, and especially 
the ex-Military, have started, notably in the Cap Haitien area, and will need to accelerate in 
the build up of the kind of security level that is required for the holding of elections. 

International Support for Haiti 

The Interim Government enjoys strong support from all the major players in Haiti, including 
the United States, France, Spain and several Latin American States and International bodies 
such as the UN, the OAS, the World Bank, the IMF, the InterAmerican Development Bank 
and  others.  Relations  with  CARICOM,  which  had  been  strained  over  the  conditions 
surrounding the departure of President Aristide, are gradually improving. 

International  Donors  and  the  Interim  Government  adopted  an  Interim  Cooperation 
Framework:  ICF,  which  was  used  as  the  basic  document  for  a  Pledging  Conference  in 
Washington  in  July  2005.  An  amount  of  US$  1.2  billion  was  pledged  on  that  occasion,  the 
largest single pledge being that of the EU.  

An  International  Conference  on  Haiti  was  organised  in  Cayenne  in  March  2005.  On  that 
occasion  donors  reiterated  their  direct  support  by  renewing  pledges  made  in  2004  in 
Washington  and  committing  themselves  to  an  acceleration  of  aid  disbursements  to  show 
solidarity  for  Haiti  and  allow  the  Haitian  population  to  view  tangible  benefits  from  the 
political change process that is ongoing. 

The Government of Canada, along similar lines, is organising an International Conference on 
Haiti in Montreal on 16-17 June, during which supporters of Haiti will debate issues related to 
security and stability, the elections and the delivery of aid. 

Economic Recovery 

The International Monetary Fund delivered a positive appraisal of the Haitian Government’s 
efforts towards economic recovery. While recognising that recovery is a slow process, given 
the  difficult  general  conditions  in  the  country,  the  report  recognises  that  the  Governments 
efforts  have  resulted  in  a  decline  in  inflation,  a  stabilisation  of  the  exchange  rate  and  a  net 
increase in international reserves. Performance under and IMF SMP (April-September 2004) 
was  satisfactory,  all  quantitative  targets  were  met  by  wide  margins  and  good  progress  was 
made  on  structural  measures.1  This  was  followed  by  an  EPCA  (October  2004–September 
2005). Again most quantitative targets were observed and structural measures  implemented. 
Haiti cleared its arrears to the World Bank thus allowing the WB to approve a fast disbursing 
adjustment operation. However, revenue shortfalls and delays in Donor Funded actions have 
required  revisions  to  the  budget  and  forced  re-prioritising  of  expenditures  to  provide 
maximum support to economic recovery. According to the article IV report, the IMF foresees 
in  2005/2006  real  GDP  growth  of  3  percent  and  inflation  of  10  percent.  The  challenge 
thereafter will be to sustain growth of 4 percent and generate the government revenue needed 
to  fund  substantial  improvement  in  social  services  and  public  sector  institutional  capacity. 
“Critical  prerequisites  will  be  successful  elections,  national  reconciliation  and  continued 
donor support”.1 

1 

MF Staff Report on 2005 Article IV Consultations. 

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Commission Proposal  

The Commission has considered the political and human rights situation, which while still not 
optimal, is slowly evolving. Nevertheless, the efforts to maintain the commitments related to 
the  electoral  calendar;  the  good  performance  by  the  government  in  the  economic  recovery 
process  which  is  crucial  to  the  battle  against  poverty  which  feeds  discontent,  violence  and 
insecurity;  the  wide  ranging  expression  of  support  to  the  people  of  Haiti  and  the  Interim 
Government  by  the  International  Community;  the  not  inconsequential  lead  times  that  are 
required  for  putting  together  and  actually  disbursing  development  assistance  programmes, 
have  led  the  Commission  to  propose  that  the  remaining  Article  96  measure  relating  to  the 
release of the €72 million of the 9th EDF be lifted. 

The Commission proposes that the letter to the Haitian Prime Minister announcing the lifting 
of the measures should stress the importance that the EU places on the democracy, the rule of 
law,  good  governance  and  human  rights  and  that  it  encourages  the  Haitian  government  to 
maintain its efforts in implementing the commitments it has entered into vis-à-vis the EU and 
the people of Haiti.  

The Union will continue its close association with developments in Haiti through continuous 
and enhanced  political dialogue,  in the context of the Cotonou Agreement, with the Interim 
government and with the new Government that will emerge from the upcoming elections 

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Proposal for a 

COUNCIL DECISION 

repealing Council Decision 2001/131/EC concluding the consultation procedure with 
Haiti under Article 96 of the ACP-EC Partnership Agreement 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to the ACP-EC Partnership Agreement,2 as entered into force on 1 April 2003, 
and in particular Article 96 thereof, 

Having regard to the internal agreement between the representatives of the governments of the 
Member  States,  meeting  within  the  Council,  on  measures  to  be  taken  and  procedures  to  be 
followed  for  the  implementation  of  the  ACP-EC  Partnership  Agreement,3  and  in  particular, 
Article 3 thereof, 

Having regard to the proposal from the Commission,4 

Whereas: 

(1) 

(2) 

(3) 

On  the  basis  of  Council  Decision  2001/131/EC,5  whereby,  in  accordance  with 
Article 96(2)(c)  of  the  ACP-EC  partnership  agreement,  “appropriate  measures”  were 
adopted according to which financial aid granted to Haiti was partially suspended. 

Council Decision 2004/681/EC expires on 31 December 2005 and requires a review of 
the measures after six months. 

In March 2005  a working group, set  up by the presidency of the  European Union in 
Haiti,  the  European  Commission  and  representatives  of  the  Member  States  in  Haiti, 
issued a report assessing progress on the Haitian Government’s explicit commitments 
as regards the essential elements of Article 9 of the Cotonou Agreement, in particular 
respect  for  human  rights,  democratic  principles  and  the  rule  of  law,  in  view  of  the 
return of the country to full constitutional democratic governance. 

(4) 

The  current  situation  in  Haiti  is  very  alarming  as  regards  safety,  respect  for  human 
rights and poverty. This was confirmed by the April 2005 report of the UN Security 
Council mission. Nevertheless, on several occasions the international community has 

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OJ L 317, 15.12.2000, p. 3.  
OJ L 317, 15.12.2000, p. 376. 
OJ C […] […], p. […] 
OJ L 48, 17.02.2001, p. 31. Decision as last amended by Decision 2004/681/EC (OJ L 311, 08.10.2004, 
p. 30). 

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reaffirmed  its  commitment  to  supporting  the  Interim  Government  and  the  Haitian 
people in their efforts on behalf of democracy and economic and social development. 

(5) 

The Interim Government deserves the confidence of the European Union to ensure the 
political transition, in particular by the organisation of the free and fair elections in full 
compliance with the announced electoral calendar, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Council Decision 2001/131/EC is repealed: 

The Annex is replaced by the text annexed to this Decision. 

This Decision shall be published in the Official Journal of the European Union. 

Article 2 

Article 3 

The European Parliament shall be fully and immediately informed of this decision. 

Done at Brussels, […] 

For the Council 
The President 

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ANNEX 

Letter to be addressed to the Interim Government of Haiti 

Dear Sir, 

The European Union attaches great importance to the provisions of Article 9 of the Cotonou 
Agreement.  The  ACP-EC  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  respect,  the  European  Union  has  followed  closely  the  transition  in  Haiti  that  started 
with the designation of the new Interim Government of Haiti, under your leadership, sworn in 
on 17 March 2004 following an extensive consultation process based on the CARICOM/OAS 
plan. 

On  12  May  2004,  discussions  took  place  in  Brussels  between  you  and  the  European 
Commission  with  a  view  to  examining  the  political  agenda  of  the  Interim  Government  in 
relation  to  the  restoration  of  democratic  and  constitutional  rule.  The  European  Union  took 
note  of  your  commitments  particularly  as  regards  the  improvements  of  the  human  rights 
situation,  the  establishment  of  democratic  principles  including  the  holding  of  free  and  fair 
elections, the rule of law and good governance, as stated in your letter of 25 May 2004 to the 
European Commission. Those binding commitments, which are always valid, should lead in 
due course to greater political stability in Haiti.  

The European Union has been following closely the developments in Haiti on all fronts and 
has  played  a  very  active  role  in  the  efforts  of  the  International  Community  to  assist  the 
country  on  its  ambitious  and  difficult  trek  towards  democratic  governance.  We  strongly 
believe  in  the  entitlement  of  the  Haitian  people  to  a  better  life,  in  a  secure  and  stable  Haiti 
where  democratic  principles,  human  rights,  the  rule  of  law  and  good  governance  are  fully 
respected. 

The European Union, as you know, has played a leading role in the formulation and adoption 
of  the  Interim  Cooperation  Framework  and  was  the  largest  single  donor  to  make  a 
commitment towards the development of Haiti at the Washington Conference in 2004. Since 
then,  much  progress  has  been  made  and  financial  flows  are  gradually  attaining  the  desired 
levels as the countries capacity to absorb financial and technical assistance has grown. 

The European Union has worked very closely with all the major international players and has 
expressed its full support for the UN mission in Haiti, MINUSTAH, and its major efforts to 
assist the Government and the Haitian National Police to establish the security and stability 
which are necessary for the country to progress towards elections in the fall of 2005 and for 
the successful implementation of sustainable development programmes. 

The  European  Union  has  assessed  the  progress  that  has  been  achieved  on  the  political  and 
economic front, through its own resources and through the Security Council reports on Haiti 
and  has  decided  that  the  measures  taken  under  Decision  xxx  be  repealed.  Under  those 
measures,  the  signature  of  the  National  Indicative  Programme  for  Haiti  under  the  9th  EDF 
was to have taken place after the national elections and with the new democratically elected 
government. Currently the programming of the 9th EDF is under way with your Government 
and the NIP will now be signed as soon as this programming exercise has been completed. It 

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is important that this process progress rapidly so that the related actions bringing benefits to 
the Haitian people are also rapidly implemented. 

It is essential for the success of the cooperation to ensure a strengthened absorptive capacity 
for aid, which is currently lacking, through good governance and aid-management capacity-
building measures. The modalities of implementation will be those adapted to the Country’s 
capacity for adequate management of public finances.  

The European Union will follow closely further developments in the democratisation process, 
in particular in relation to the achievement of the commitments of the Interim Government in 
the areas of human rights, national dialogue, democratic principles, economic governance and 
the steps towards local, national and presidential elections. We welcome the announcement of 
the Electoral calendar with local elections taking place in October 2005 and the National and 
Presidential Elections taking place  in two rounds in  November and December  2005  thereby 
allowing  the  new  Government  to  assume  office  in  February  2006.  The  European  Union 
strongly  believes  that  nothing  should  be  allowed  to  delay  this  crucial  calendar  and  is 
providing  support  for  the  electoral  process  to  the  tune  of  €18 million.  Additionally  the 
European Union is considering an Electoral Observation Mission. 

The Union will continue its close association with developments in Haiti through continuous 
and  enhanced  political  dialogue,  in  the  context  of  the  Cotonou  Agreement,  with  your 
government and with the new Government that will emerge from the upcoming elections. 

Please accept, Sir, the assurance of our highest consideration. 

Brussels, 

For the Commission 

For the Council 

The President 

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