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Europe Daily Bulletin No. 7877
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GENERAL NEWS / (eu) acp/eu

Agreement of principle from ACP/EC Committee of Ambassadors to financial measures allowing certain activities financed by EDF leftovers to be continued pending implementation of Cotonou Agreement

Brussels, 09/01/2001 (Agence Europe) - The transitional measures in force since 2 August 2000 until the implementation of the Cotonou Agreement between the European Union and the ACP countries (African, Caribbean, Pacific) allow early implementation of the commercial provisions of the agreement and extended application of almost all of the provisions of the fourth revised Lomé Convention (Lomé IV bis), but do not make it possible to mobilise the financial resources of the ninth European Development Fund (see EUROPE of 3 August 2000, p.5). In order to avoid all break in the financing of the activities not covered by these transitional measures, the ACP/EC Committee of Ambassadors gave its agreement of principle to specific financial measures that will ensure continuity of certain activities financed by leftovers from the eighth EDF until the Cotonou Agreement takes effect, and the continuation of cooperation with several countries or regions which, given the mid-term review of the national indicative programmes, have satisfactorily used the financial resources allocated to them, ensure the quality of implementation of the projects and fully or almost fully committed their original allocation. By way of this decision, the additional resources will be allocated to regional cooperation between the ACP States mainly in order to ensure the continuation of the activities of joint ACP/EC institutions, to indicative programmes of certain countries or regions and to intra-ACP cooperation. We give below details of the financial measures:

Regional cooperation. EUR 22 million will be taken from resources not allocated to the 8th EDF, as an advance on the 9th EDF, in order to finance the budget of the enterprise development centre (EDC) in 2001, and a maximum of EUR 12 million will go to the budget of the agricultural development centre (ADC) during the same financial period. Any funds left over from those allocated to these two institutions, not used during the 2001 financial period, will be automatically carried over to the 2002 financial period.

National indicative programmes. EUR 125.6 million will come from non-allocated 8th EDF resources to be added to the initial budgets of the indicative programmes of the 8th EDF of the countries and regions that have achieved satisfactory results. These additional resources will be allocated by the Commission, either by payment of all of the second tranche, or in relation to the existence of projects that have already been the subject of feasibility studies and likely to be presented in the near future.

Actions for aid to refugees. EUR 100 million will be taken from 8th EDF resources not allocated to guarantee that the Community may continue to support vulnerable refugees.

This decision will allow all the funds that do not come under the financial allocation of the 9th EDF to be committed. It is expected that it will soon be endorsed by the ACP/EC Council of Ministers office by written procedure (without waiting for the next joint ministerial session) so that it will take effect the day it is approved. The only concern expressed by the ACP side within the joint ambassadorial committee concerns the absence of reference to any form of compensation in the aid programme, for the ACP States on which sanctions have been imposed and which, as such, were not able to benefit from Sysmin reimbursement. The measures promised by the Commission to "reach a satisfactory solution" should, however, reassure the ACP countries.

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