Proposal for a Council Decision amending 2003/583/EC: Council Decision on the reallocation of funds received by the European Investment Bank for operations carried out in the Democratic Republic of Congo under the second, third, fourth, fifth and sixth EDFs
Date: 2006-09-15
Institutions: European Commission
Subjects: Democratic Republic of the Congo, European Commission, European Development Fund, European Investment Bank, democratisation, economic reconstruction, election, external debt, redemption of public debt

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.9.2006 
COM(2006) 498 final 

Proposal for a 

COUNCIL DECISION 

amending 2003/583/EC: Council Decision on the reallocation of funds received by the 
European Investment Bank for operations carried out in the Democratic Republic of 
Congo under the second, third, fourth, fifth and sixth EDFs 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Background to operation 

In order to act on the priorities set by the Council on General Affairs and External Relations 
on 28 January 2003 regarding relations with the DRC, given that the funds allocated to that 
country  are  clearly  inadequate,  the  Commission  has  proposed  that  arrears  payments  for  the 
debt  in  respect  of  the  previous  EDFs,  instead  of  being  returned  to  the  Member  States,  be 
reallocated and managed by the Commission to finance operations benefiting the DRC.  

Accordingly, on 21 July 2003 the Council adopted Decision 2003/583/EC on the reallocation 
of funds received by the EIB for operations carried out in the DRC under the second, third, 
fourth,  fifth  and  sixth  EDFs.  This  Decision  provides  additional  funding  of  €105  million  for 
the implementation of aid operations in the DRC. Article 4 of the Decision also states that this 
€105  million  will  be  paid  into  an  account  and  managed  by  the  Commission,  and  Article 6 
indicates  that  management  will  be  carried  out  in  accordance with  the  arrangements  in  force 
for the ninth EDF. 

To  ensure  that  these  funds  are  used  in  accordance  with  the  EDF’s  commitment  rules  and, 
accordingly, that reforms to support the transition process are continued, Article 4 of Decision 
2003/583/EC  should  be  aligned  on  the  provisions  of  the  internal  agreement  (Decision 
2005/446/EC) by setting the deadline for committing the funds of the additional allocation at 
31 December 2007. The reasons for proceeding in this way are as follows: 

1. Delays in preparations for the electoral process 

As  a  result  of  delays  in  preparations  for  the  electoral  process,  it  took  a  year  longer  than 
anticipated to  complete the transition,  which had initially been scheduled to end on 30 June 
2005  and  was  subsequently  postponed  until  30 June  2006.  The  transition  should  culminate 
with the election of a new President and a new Assembly in November 2006 at the earliest.  

Installing a democratically elected government will mark the effective launch of democratic 
transition towards the restoration of a genuine rule of law. Once that has been accomplished, 
the tasks for the next few years will be to institutionalise a political culture and put in place 
functioning institutions and infrastructure.  

2.  The  need  to  provide  back-up  to  the  government  in  the  post-transition  phase  and  to 
rapidly meet emerging needs which may affect the DRC’s stabilisation 

Once it is up and running, the new government will face a series of demands and emergencies 
which must be dealt with in order to secure the peace and make progress towards the DRC’s 
economic and social reconstruction. 

The Council, the Commission and the international community as a whole have reaffirmed on 
numerous occasions that the political priority is to ensure a successful transition to democracy 
and  to  stabilise  and  consolidate  the  situation  in  the  post-transition  period.  The  General 
Affairs/external relation Council conclusions of 12 June 2006 and the latest conclusions of the 
Council (15-16 June 2006) also focus on support for the security reform process that the EU 
will  continue  to  provide  after  the  elections,  and  on  the  EU’s  commitment  to  improve 
governance and assist reconstruction in the post-election phase.  

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The  international  community,  and  the  EU  in  particular,  must  be  prepared  to  help  the  new 
government  carry  out  its  programme  (public  administration  reform,  governance,  security 
sector reform, etc.) for at least two years after it takes office. 

The post-transition phase coincides with the programming phase of the tenth EDF and should 
enable  the  Commission  to  increase  its  support  to  the  DRC  and  redefine  its  political 
relationship with the new government. By virtue of Article 8 of the Cotonou Agreement, the 
EU can legitimately and lawfully start a dialogue on the major institutional reforms that the 
government  should  undertake  to  tackle  the  underlying  causes  of  the  crisis  and  relaunch  the 
DRC’s development. 

Aligning the deadline for committing the funds of the additional allocation on the deadline for 
committing the funds of the ninth EDF will enable the Commission to continue assisting the 
DRC in a flexible way and to meet emerging priorities and needs. 

Conclusion 

For the reasons set out above, the Commission proposes that the Council adopt the attached 
Decision.  

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Proposal for a 

COUNCIL DECISION 

amending 2003/583/EC: Council Decision on the reallocation of funds received by the 
European Investment Bank for operations carried out in the Democratic Republic of 
Congo under the second, third, fourth, fifth and sixth EDFs 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to the Partnership Agreement between the members of the African, Caribbean 
and  Pacific  Group  of  States  of  the  one  part,  and  the  European  Community  and  its  Member 
States of the other part, signed in Cotonou on 23 June 2000,1 and revised in Luxembourg on 
25 June 2005,2 

Having regard to the Internal Agreement of 12 September 2000 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 Partnership Agreement 
between  the  African,  Caribbean  and  Pacific  States  and  the  European  Community  and  its 
Member  States  signed  in  Cotonou  (Benin)  on  23  June  2000  and  the  allocation  of  financial 
assistance  for  the  overseas  countries  and  territories  to  which  part  four  of  the  EC  Treaty3 
applies, and in particular Article 8(2) thereof, 

Having regard to the proposal from the Commission drafted in agreement with the European 
Investment Bank (EIB), 

Whereas: 

(1) 

(2) 

2003/583/EC: Council Decision of 21 July 2003 on the reallocation of funds received 
by  the  European  Investment  Bank  for  operations  carried  out  in  the  Democratic 
Republic of Congo under the second, third, fourth, fifth and sixth EDFs4 indicates that 
the total additional allocation is made available for a four-year period as of the date on 
which the account is opened. 

Decision  2005/446/EC  of  the  Representatives  of  the  Governments  of  the  Member 
States meeting within the Council of 30 May 20055 sets the deadline for committing 
the funds of the 9th European Development Fund (EDF) at 31 December 2007.  

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OJ L 317, 15.12.2000, p. 3. 
OJ L 287, 28.10.2005, p. 4. 
OJ L 317, 15.12.2000, p. 355. 
OJ L 198, 06.08.2003, p. 9. 
OJ L 156, 18.06.2005, p. 19. 

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(3) 

Because the transition in the DRC took longer to complete than anticipated in the light 
of delays in preparations for the electoral process and in making the funds of the tenth 
EDF  available,  the  deadline  for  committing  the  funds  of  the  additional  allocation 
referred to by Decision 2003/583/EC has had to be extended. 

(4) 

Accordingly, the deadline for committing the additional funds should be aligned with 
the deadline provided for in Decision 2005/446/EC, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  third  sentence  of  the  first  sub-paragraph  of  Decision  2003/583/EC  is  replaced  by  the 
following: 

“The deadline for committing the funds deposited on this account shall be 31 December 2007, 
as per Decision 2005/446/EC.” 

Article 2 

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

Done at Brussels, 

For the Council 
The President 

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