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Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - Overseas Development Aid.

Dick Spring

Question:

61 Mr. Spring asked the Minister for Finance his views on the provision of EU funding to assist with the rebuilding of Kosovo and the western Balkans; if he related these views in full to the EU Budget Commissioner, Michaele Schreyer during a meeting which took place ahead of the last ECOFIN meeting; and if he will make a statement on the matter. [14277/00]

The Lisbon European Council in March 2000 reaffirmed that the peace, prosperity and stability of south-east Europe is a strategic priority for the European Union. Ireland, like all member states, is committed to reconstruction in Kosovo and the western Balkans as one of the means by which this can be achieved. In this context, the EU budget for 2000 makes substantial provision for urgent assistance to the region in terms of food and humanitarian aid, with a total commitment of 360 million euro for Kosovo in 2000.

For the longer term, funding levels need to reflect reliable assessments of immediate needs, well thought out strategies for the future sustainable development of the region, and a realistic assistance programme. In that context, the Commission was asked to present a detailed assessment of needs for the region to the Council of Ministers, but has so far failed to do so.

The Commission has, however, proposed a revision of the Berlin Financial Perspectives in order to fund a figure of 5.5 billion euro which it believes is needed for Kosovo and the western Balkans. The financial perspectives set out for each year the expenditure ceilings for the different categories of EU budget expenditure. The Commission proposal involves increasing the sub-ceiling for EU budget spending on external actions at the expense of EU spending on agriculture.

In my meeting with Commissioner Schreyer on 19 April 2000, I stated my opposition to any revision of the financial perspectives agreed at the Berlin Council. The perspectives represent a finely balanced and hard won political agreement. That agreement is reflected in the financial envelopes for different categories of expenditure, which cannot be set aside without reopening European Council decisions. Re-opening those decisions now could lead only to increased demands for the future.

I indicated to the commissioner that I looked forward to considering the Commission's detailed assessment of needs for the western Balkans when it was presented to Council. I noted that the Commission accepted that the financial perspectives agreed at Berlin could already accommodate funding of some 3.2 billion euro assistance for the region to 2006. Finally I underlined my willingness to consider options within the 2001 budget procedure which would provide necessary funding for the region without altering the financial perspectives.

The Deputy may wish to note that the 8 May ECOFIN held an orientation debate on the 2001 budget, including the issue of support for the western Balkans. The official conclusions of the Council meeting stated in this regard that "the member states considered that a revision of the financial perspective could not be envisaged at the present stage and that in any case there should first of all be a thorough evaluation of requirements".
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