EU Competences and Governance

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2 EU Competences and Governance Competence Development Cooperation Shared (EU policy alongside Member States policies). Trade Exclusive for goods and most services Foreign Policy National Environment / Climate Change Shared

3 in 2008 USD billions Size, Capacity, Partnerships 16 Total use of the multilateral system in 2008 (excluding EC and Korea as donors) (Gross ODA disbursements) WFP UNDP UNICEF UNHCR Other UN EU Institutions World Bank Group United Nations Regional Develoment Banks Other multilaterals Core multilateral aid Multi-bi aid

4 1. How does it all work post-lisbon? 2. What is on the EU s immediate agenda? 3. The Financial Perspectives What are the issues for the UK?

5 Policy coordination Policy-making Trade Commissioner Policy Trade Post-Lisbon Treaty external relations structure European Commission Int. Coop, Crisis Response, Hum. Aid Commissioner Int. Coop, Crisis Response, Hum. Aid Enlargement & Neighbourhood Policy Commissioner Enlargement Multi-annual programming, political coordination and reporting Commission Vice President / High Rep for Foreign Affairs & Security Policy Neighbourhood Policy Development Commissioner Development European External Action Service Com Vice President / High Rep Foreign Affairs & Security Policy HR, Security, Conflict Prevention Joint programming with Commissioner sign-off CFSP / ESDP Project identification and implementation DG ECHO DG Enlargement & DG EuropeAid DG EuropeAid EEAS EU Delegations Geography Global Global Western Balkans & Turkey Eastern Europe, Med, Middle East Asia, Latin America / Global thematic Africa, Carib n, Pacific Global Global Financial instrument 5.6bn HAI 11.5bn 11.2bn 16.9bn 22.7bn 2.1bn 1.1bn 2.0bn IPA ENPI DCI EDF SI EIDHR CFSP

6 Reform of the EU External Relations Structure Commission New EU external structure Council College of other Commission ers Foreign Affairs Council New FAC chaired by HR GAERC Council chair rotating presidency Other Council formations Commissioner Enlargement and Neighbourhood Commissioner Development Commissioner External Relations High Representative Development Council Merged with RELEX Commissioner post High Representative DG Enlargement DG EuropeAid DG Development DG External Relations DG Humanitari an Aid Commission services 30 Directorates General Merged into EEAS Desks and programming merged into EEAS (development policy stays with Commission) European External Action Service (EEAS) single country desks Merged into EEAS DG E - external political relations Council Secretariatother DGs Partly merged into Delegations EU Special Representatives 130 Commission Delegations Merged into Union Delegations 130 Union Delegations Merged into Union Delegations New York and Geneva Offices = indicates staff movement Member States seconded diplomats

7 The New EU External Relations Structure Commission New EU external structure Council College of other Commission ers Commissioner Enlargement and Neighbourhood Commissioner Development Commissioner Humanitarian Aid Foreign Affairs Council High Representative Development Council Other Council formations DG Enlargement DG EuropeAid European External Action Service (EEAS) single country desks Programming Council Secretariatother DGs DG Dev 130 Union Delegations Aid implementation = indicates staff movement

8 EEAS Organogram

9 The Formal Agenda: Key European Commission Deliverables on Development for Green Paper on Budget Support Communication on the EU Budget Review Green Paper on EU Development Policy: EU development policy in support of inclusive and sustainable growth (and possible review of European Consensus) Communication on the EU-Africa Strategy Communication on Climate Change and Development with Commissioner Hedegaard Communications on a Coherent EU External Relations and Development Strategy for the Horn of Africa and Afghanistan, with Baroness Ashton Communication on Enhancing Growth and Competitiveness in Partnership with Business: a Strategy for Business in Developing Countries Communication on the review of the Joint Africa-EU Strategy Communication on Humanitarian Food Assistance Proposal for a regulation of the Parliament and the Council establishing a financing instrument for humanitarian aid Follow through on the 12-point action plan in support of the MDGs

10 A Twelve-point EU Action Plan in Support of the MDGs Pushing Member States to deliver on aid commitments Increasing aid effectiveness and better value for money Targeting fragile states Targeting the most off-track MDGs Gender, Health, Education, Food Security Fostering ownership of the MDGs in developing countries Ensuring EU policies work coherently for development goals Mobilising domestic resources through better taxation and supporting the fight against tax evasion Strengthening regional integration and trade Supporting initiatives on innovative financing Using the EU's 2.4bn a year "fast-start" funding commitment for climate change Making development and security work better together Supporting a stronger weight of developing countries in the international aid architecture

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12 The Informal Agenda Building relationships Building new institutions Events Managing disenchantment with EU? Managing disenchantment with development?

13 The Financial Perspectives Three key questions about funding for EU external action How much? Own Resources Ceiling Level 1 What for? Budget Headings Level 2 How managed? Financial Instruments & Regulations Level 3

14 Budget Heading 4: The EU as a Global Player Total = 56 billion for % of total EU budget

15 Non-State Actors Food Security Investing in People Environment Asylum & Migration The Financial Perspectives EU external relations instruments and programmes Macro-financial Assistance Instrument for Democracy & Human Rights Stability Instrument Humanitarian Aid Instrument Instrument for Nuclear Safety Food Facility Instrument DCI ENPI IPA ICI

16 Europe 2020: Priorities for the Financial Perspectives Smart, sustainable and inclusive growth Citizenship Pre- Accession A global Europe Administration Research Innovation Education Infrastructure Climate & Energy CAP Reform Cohesion Policy Cultural Diversity Pre-Accession Fund. Rights Support Justice Security Asylum & Migration Border Mgt Poverty Alleviation Aid Eff. & Impact Blending Partnerships Neighourhood Policy Climate & Energy Crisis Response Migration Terrorism Organised Crime EEAS Posts Rationalisation Expenditure

17 The Financial Perspectives Three key questions about funding for EU external action How much? Own Resources Ceiling Level 1 What for? Budget Headings Level 2 How managed? Financial Instruments & Regulations Level 3

18 Financial Perspectives Timeline nd half of 2010: EC to issue a menu of general options for CAP reform ( ) Early to mid-2011: Commission proposal for next EU Financial Perspectives ( ) Mid-2011: Commission to submit formal legal proposals on detailed CAP reform for negotiation by EU ministers Completion of the negotiations on the EU Financial Perspectives ( ) Entry into force of the EU Financial Perspectives ( ) Oct: EC Communication on the EU budget review 1 Jul: Belgian Presidency 1 Jul: Polish Presidency 1 Jul: Cypriot Presidency 1 Jul: Lithuanian Presidency 1 Jan: Hungarian Presidency 1 Jan: Danish Presidency 1 Jan: Irish Presidency 1 Jan: Greek Presidency

19 To what extent can blending of loans and grants free up funds? How Much, What For and How Managed? Level 1: How much? How much should Member States contribute, as a percentage of GNI, to the EU budget? What should be the balance between direct Member State contributions as a percentage of GNI and tools for generating own resources? Level 2: What for? What percentage of the total budget should Heading 4 represent? How should climate change be financed? Level 3: How managed? Should there be a separation of instruments that are ODA-eligible and those that are not? Should the EDF be budgetised?

20 Issues for the UK 1. The EU in contested multilateral space. 2. Does the emerging UK agenda mesh with the EU s agenda? 3. Choosing issues and maximising influence.

21 Consolidate or Cooperate The EU Swingometer

22 2008 DFID Funding to the Multilaterals

23 Declining Share of EC Aid ODA as a percentage of total EU 15 GNI and percentage of total EU 15 ODA managed by European Commission compared 0.56% 0.70% 0.43% 0.39% 0.42% OD A as a % of total E U 15 G NI 20% 26% 19% 15% 13% % of total E U 15 OD A 2006 actual 2007 actual 2008 actual 2010 target 2013* 2015 target *Percentage at end of current Financial Perspectives Source: OECD/DAC 2008 and Commission Communication: Financing for Development & Aid Effectiveness The challenges of scaling up EU aid (COM(2006) 85 final)

24 The Poverty Focus of EC Aid

25 The UK Agenda DFID s Structural Reform Plan

26 Choosing Issues and Maximising Influence Seeing the wood for the trees: which issues and when will deliver maximum leverage? Engagement: Directly? Through HMG? Through EP? Via media?