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4.2.1. Which institution carries responsibility for external relations ?

The Commission has six services active in external policy : commerce, the enlargement of the EU, external relations, development, the Humanitarian Aid Office  (ECHO)  and the Office for Cooperation (EuropeAid). The Commission negotiates external agreements which are then concluded by the Council.

The European Parliament intervenes via specialised commissions (the external affairs commission, the « rights of man » sub-commission, the « security and defence » sub-commission, the development commission, the international commerce) and its mixed parliamentary assemblies, especially the parliamentary joint assembly CPA-EU, the Euro-Mediterranean parliamentary assembly, etc.)

More information regarding external commerce :
europa.eu/scadplus/leg/fr/s05020.htm
ec.europa.eu/trade/index_fr.htm

Concerning EU enlargement :
europa.eu/scadplus/leg/fr/s40000.htm

4.2.2. What is the framework for relations with other European countries ?

The EU entered into intensive relations with countries of the European Free Trade Association (EFTA), an organisation founded in 1960, some of whose members have since joined the EU.  Today the members of EFTA are : Switzerland, Norway, Iceland and Liechtenstein. These countries apply European legislation regarding the internal market and follow the Union in other political domains.  With the exception of Switzerland, all these countries additionally take part in the European Economic Zone (EEZ), which was created following the signing of a treaty in Oporto in 1992 and which came into effect  in 1994.
 
With respect to the eastern Balkans (Albania, Bosnia-Herzegovina, Serbia and Montenegro) the EU has established a « process of stabilisation and association » with the ultimate goal of achieving EU membership. These countries already benefit from a free access to the European market and they receive benefit (since 2000, under the CARDS program) for carrying out their own national reform programs.

Croatia applied for EU membership in 2003, with negotiations beginning in October 2005.  The former Yugoslav Republic of Macedonia (FYRM) applied to join in March 2004 and was granted the status of candidate member in December 2005.

The situation regarding Turkey is more complicated.  This country has been associated with the European Economic Community (EEC) since 1963. Since 1996 a customs union has been established, and in 1987 Turkey made its application for membership.  Negotiations began officially in October 2005.  But the membership of this major country, whose population borders on 70 million and with a low level of income (see Illustration 1.3.3.c) raises numerous questions.  The principal obstacles to membership are: delays in implementing reforms which have been initiated (particularly in the areas of justice and administration) and human rights violations.  Nevertheless, Turkey has made considerable progress toward meeting the political criteria for membership.  Moreover Turkey's rate of economic growth is the strongest of all the candidate members and the high rate of inrease in population goes some way to balance the effects of ageing in the EU generally (see Sub-chapter 2.5).
 
AELE : www.efta.int

Further information on the process of stabilisation and association:
europa.eu/scadplus/leg/fr/s05055.htm

For the current situation regarding the  relations  between the UE and Turkey :
ec.europa.eu/enlargement/turkey/eu_turkey_relations_fr.htm

Illustration 4.a. Economic growth in the candidate countries.

4.2.3. Developments in the « Euro-Mediterranean Partnership »

Given their geographic proximity, and above all, their historical and cultural affinities, the EU's Mediterranean neighbours were amongst the first to establish economic and commercial links with the EU.

Launching the « Euro-Mediterranean Partnership » on the occasion of the « Barcelona Conference » in 1995, the EU set in motion a new strategy for economic, commercial and political relations with the 12 Mediterranean countries: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia, Turkey, the Palestinian Authority, Malta and Cyprus. The last two countries became full members of the EU in 2004.

The Partnership has three objectives:

• support for political stability and democracy (pluralism, peaceful resolution of conflicts, respects for human rights).  To this end it was decided that a new « Euro-Mediterranean Parliamentary Assembly » should be established, with consultative powers, and to begin cooperation regarding the ESDP.   Support is provided in the form of direct action in the area of human rights and support for the civil population;
• the creation of a Euro-Mediterranean free trade area in 2010;
• the development of social and cultural dialogue; to this end a Euro-Mediterranean Foundation has been set up to promote dialogue between cultures and civilisations;
• A program of finance (called MEDA) was set up in 1995 to achieve these aims.  During the period 2000-2006 (MEDA II) financial assistance amounting to 5,300 million euros has been granted.  The MEDA program is being replaced, for the period 2007-20013, by the Good Neighbour or Partnership scheme (IEVP or ENPI), which also replaces the TACIS program.

More information regarding the Barcelona Conference and the Euro-Mediterranean Partnership :
europa.eu/scadplus/leg/fr/s05052.htm

4.2.4. What has been the impact of the euro on Mediterranean countries ?

This is a subject on which there is little information because the relations between countries on the North and South of the Mediterranean have been dominated by political issues. Labelling prices in euros throughout the Mediterranean region should, in principle, favour the growth of European tourism and exports into the EU.  Just as for other countries outside the euro zone, the increased stability and simplification of the currency exchanges for exporters selling to Europe, ought to favour commerce between the zones. The inclusion of Malta and Cyprus in the Economic and Monetary Union (EMU) beginning in January 2008 will reinforce this tendency.

4.2.5. What has been the progress in the relations between Mediterranean countries and the EU ?

The relations between the North and the South of the Mediterranean ought to receive fresh impetus following the Barcelona Conference in 1995. Over the last ten years, matters have evolved little. The absence of openness on the part of the EU to immigrants from North Africa or to agricultural products generates an image of Europe more as a fortress than as a place of solidarity and justice.

Nevertheless the development of harmony in the regions surrounding the EU indicates that the concept of the Mediterranean as « mare nostrum » ought to be taken up again.  Regions such as Greece, the Mezzogiorno (southern Italy), Sicily, Corsica, Sardinia, and large areas of the Iberian Peninsula will not experience an accelerated development unless they are near a centre of development.  Germany and Austria have benefited from such conditions with the membership of Central European countries.

The same ought to apply regarding Mediterranean countries and the EU. A Mediterranean fund, such as the one set up by the EIB will not contribute to development of the region unless the trans-Mediterranean commerce has been truly freed of restrictions.

Nevertheless, since the recent expansions of the EU in 2004 and 2007, relations between the EU and countries bordering on the Mediterranean appear to have finally received the attention that they merit.

4.2.6. What is the « European Good Neighbour policy » ?

The « European Good Neighbour Policy » is the continuation of « the Euro-Mediterranean Partnership » from 2004 onwards. It aims at the creation of a group of friendly, stable states around the EU and the abolition of divisions between the EU and its neighbours.  Initially it did not envisage countries other than neighbours to the east of the EU (supported by a program of technical aid called TACIS since 1991), but it has since been extended to include Mediterranean countries to the south.

The « European Good Neighbour Policy » includes Russia, the Ukraine, Bierlorussia, Moldavia, Armenia, Azerbaijan, Georgia and the Mediterranean region (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and the Palestinian Authority). Turkey is not included in the « European Good Neighbour Policy » because it is a candidate country for EU membership.

This policy has the following objectives:

• the stabilisation of the regions bordering the EU by long-term social and economic development;
• the setting up of secure borders, by reinforcing the administration of border controls and procedures for immigration;
• collaboration in areas such as the environment, public health, crime prevention and the combat against organised crime;

For 2005-2006, the assistance program TACIS has been funded to the amount of 3140 million euros serves to finance projects concerning the infrastructure network, institutional reforms, the development of the private sector, environmental protection and the rural economy.

The EU does not offer through this policy the perspective of membership, but still a « privileged partnership ».


Further information concerning the European Good Neighbour Policy :
europa.eu/scadplus/leg/fr/lvb/r17100.htm

4.2.7. EU relations with Asia and South America ?

In Asia the EU has its longest-standing relations with the Association of South-East Asian Nations (ASEAN), beginning in 1972 and made official in 1980 by a cooperation agreement.  In 2007 ASEAN had 10 members: Brunei Darussalam, Burma/Myanmar, Cambodia, Indonesia, the People's Democratic Republic of Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. This relationship was reinforced within the framework of the Asia-Europe Summit (ASEM) which takes place every two years.

Relations with Japan are equally intense.  The action plan adopted in 2001 extended bilateral cooperation, up to that point limited to commerce and investment, to cultural and political affairs. Europe has become the main source of direct foreign investment in Japan and the leading beneficiary of Japanese foreign investment, thus surpassing both the United States and China.

Relations with China, on the other hand, were cut off during almost ten years   following the «Tiananmen Square massacre » and the repression of democratic freedoms and human rights by the Chinese regime.  Almost ten years later the EU has relaunched a partnership with China, but with the goal of intensification of political dialogue, particularly in the area of human rights, by means of exchanges between institutions.  From the point of view of commercial exchanges, China has become the second non-European partner, and the EU is one of the principal sources of foreign investment in China.

Relations with India have also greatly developed, not only in the commercial sense, but also in terms of political, commercial and research exchanges. For instance, China and India have decided to take part in the Galileo Project, the EU's satellite navigation system.

Similarly, the EU maintains strong links with South America, where it is the principal source of development aid, due particularly to the privileged relations with Spain and Portugal.  A « Strategic Partnership » has been concluded:  political, commercial and cultural cooperation, and also links in the areas of education and science.

All countries of South America have, at present, links with the EU, either individually or in groups, either through accords relating to association, cooperation or commerce.  In 1995 the EU and MERCOSUR (Brazil, Argentina, Paraguay and Uruguay) concluded an agreement with the aim of establishing a free trade zone.   A similar agreement was concluded with Mexico in 1997 and Chile in 2002.

In addition, there are two agreements relating to political dialogue and cooperation, concluded in 2003, one with the Community of the Andes (Bolivia, Columbia, Ecuador, Peru and Venezuela), and the other with Central America.

Information about the relations between the EU and Asia :
europa.eu/scadplus/leg/fr/s05251.htm

Information about  relations between the EU and Latin America :
europa.eu/scadplus/leg/fr/s05151.htm

4.2.8. What is indicated by the term « transatlantic relations » ?

The term « transatlantic relations » indicates the partnership with the United States, which is one of the principal axes in the external relations of the EU.

The flux of trade and investment between the two partners is in the region of 1000 million euros daily. 25% of EU exports are destined for the United States, which in turn accounts for about 20% of EU imports.  The stakes generated by such a volume of exchange leads sometimes to disagreements.  Nevertheless, disputes account for less than 2% of the total volume of commercial transatlantic exchanges. They concern agricultural products, steel and aeronautics. On the other hand, the management of their points of common interest, such as the right to free competition or the mutual recognition of technical norms, serve as a model for relations between the EU and other countries.

Regarding the issue of political cooperation, the EU shares a great number of values and interests with the United States, but the EU has sometimes followed divergent directions and strategies regarding the management of global problems.

Regarding the great upheavals experienced in the international landscape at the end of the last century, and in particular the ending of the Cold War (which, over the years, obliged Europe to cut a path between the two blocs) the EU and the United-States ought to redefine their transatlantic relations. The new risks of nuclear proliferation, international terrorism, drug trafficking, as well as the new challenges of achieving a controlled globalisation, the environment, climate change, energy and sustainable development imply a search for closer collaboration.

Transatlantic partnership :
europa.eu/scadplus/leg/fr/lvb/r14105.htm

4.2.9. What is the status of the relations between the EU and sub-Saharan Africa .

The relations between EU and sub-Saharan Africa have a long history.  They date right from the 1957 Treaty of Rome, which gave to overseas territories of some Member States an associate status.  The process of decolonisation, which began at the beginning of the 1960s, transformed colonial relations into associations between sovereign countries.  Significant cooperation projects followed.

Beyond traditional links which unite the EU with African countries, within the framework of Mediterranean agreements, or the relation with the countries of Africa, the Carribean and the Pacific (ACP), the EU and the African Union (AU) began a fresh dialogue relating to the prevention and resolution of conflicts, as well as the support offered by the EU (sometimes in vain) to efforts to maintain the peace in Africa by the AU and the United Nations.

The EU-Africa partnership also includes regional economic cooperation, the issue of the external debt of African countries, integration and commerce, actions undertaken against drought and desertification, the fight against AIDS and infectious diseases, security of food supply, human rights  and the struggle against terrorism.

Information about le EU-Africa partnership :
europa.eu/scadplus/leg/fr/lvb/r12106.htm

4.2.10. What is the expected impact of the euro on African trade?

Africa will benefit from the introduction of the euro more than other continents.  It is more vulnerable to disequilibrium in the international monetary system.  A major part if its debt is in USD, while Europe is first position as the destination of African exports, which are therefore paid for in European currencies.  Prior to the euro, a loan taken out in a European currency was not justified, given the fluctuation in the value of national currencies, insufficient liquidity in the world capital markets and uncertainty regarding the destination of future exports. With the euro, African countries can more easily borrow in euros and thus have their debt in the same currency as their exports.  This reduces the risks of exchange rate variations putting an additional strain on debt repayment.  Africa is also very close to Europe for historic and geographic reasons and Europe ought to allow Africa to benefit from its new cohesion, rather than sustaining local rivalries for commercial objectives.

The Economic and Monetary Union (EMU), moreover encourages African countries to reinforce existing monetary unions.

4.2.11. What are the objectives of European policy with respect to cooperation and development ?

Since the beginning of the 1970's, Europe has pursued cooperation and development policies which complement the activities of its Member States.  Initially, European policy was based o the provisions of the EEC Treaty regarding « the association of countries and overseas territories ».

It was not until the Maastricht Treaty in 1993 that Community policy for the development of countries in the Third World was given a legal framework.  (Included within this framework are: coordination of development policies by Member States, cooperation with third party countries and the responsible international organisations)

With respect to cooperation, the EU defines four policy objectives : 

• to stimulate long-term economic and social development in developing countries;
• to stimulate the integration of developing countries in the world economy;
• to reduce poverty in developing countries;
• to consolidate democracy, a state founded on law, the respect for human rights and fundamental freedoms in developing countries.

Finally, the Treaty of Nice in 2003 introduced into the Treaty of the EC economic, financial and technical cooperation with third party countries.

Information about European policy with respect to development :
europa.eu/scadplus/leg/fr/lvb/r12000.htm
europa.eu/scadplus/leg/fr/s05031.htm

4.2.12. What agreements have been concluded within the framework of development aid ?

These public assistance programs are grouped into regional agreements and into initiatives on a global scale.

1.The regional agreements cover :

• the countries of Africa, the Carribean and the Pacific (ACP);
• certain Mediterranean countries, via association agreements.

2. The global initiatives cover :

• the countries of South America and Asia, via development assistance projects, commercial agreements, or a generalised preference system ;
• countries of the world via humanitarian aid, special funds to combat hunger.

4.2.13. What sum has been earmarked for the poorest regions during the period 2007-2013 ?

The EU and Member States together supply 55% of the world's development aid, and are therefore the largest donors of development aid.

The EU will supply around 50 billion euros to the poorest regions in the period 2007-2013:

• approximately 24 billion euros for the ACP countries (Africa, Carribean, Pacific) ;
• approximately 12 billion euros for neighbouring countries (« European Good Neighbour Policy ») ;
• approximately 10 billion euros for South America, Asia, the Near East and South Africa ;
• approximately 5,6 billion euros for security of food supply, education, the environment, and non-governmental organisations.

The main instruments of European development policy are :

• international agreements with developing countries or groups of countries ;
• a general system giving products from developing countries preferential access to the European market ;
• technical and financial support ;
• humanitarian aid.

4.2.14. When was « the Convention of Yaoundé » signed ?

In 1963, the European Community signed « the Convention of Yaoundé (I) », in Cameroon, with 17 African states and Madagascar.

This convention envisaged the establishment of a free trade area and the reduction of trade barriers.

It was the first agreement relating to cooperation between the EU and the countries of Africa, the Carribean and the Pacific (ACP), which included initially the former French-speaking colonies. Later, the programme experienced saw a rise in the amounts of grants and in the number of recipient countries.

In 1969 the convention was revised for the first time, and has since been known under the name of « the Convention of Yaoundé (II) »

Information about the ACP agreement :
europa.eu/scadplus/leg/en/s05032.htm

4.2.15. What are the « Lomé Conventions » ?

In 1975, a second revision of the Yaoundé agreement gave birth to the first  « Lomé Convention  », the name of the capital of Togo, where the convention was signed between the European Community and 46 ACP countries. Later the number increased to 79 under subsequent Conventions! This convention facilitated the access of products from developing countries into the European market.

The « Lomé Convention  » has since been renewed every five years :

• Lomé I : 1975-1980 (46 ACP countries) ;
• Lomé II : 1980-1985 (58 ACP countries) ;
• Lomé III : 1985-1990 (66 ACP countries) ;
• Lomé IV : 1990-1995 (68 ACP countries) ;
• Lomé IV bis : 1995-2000 (71 pays ACP).

The « Lomé Conventions » are considered to have contributed to industrial development and the profitable use of the natural resources of the ACP.  They are supported by two instruments of finance « STABEX », an innovative system intended to reduce the impact of price and exchange rates fluctuations on the world market and which has helped finance agricultural exports, and « SYSMIN » that similarly helped finance mining.

Information about the Lomé Conventions :
acp.rfo.fr/article4.html

4.2.16. What is the « Cotonou Convention » ?

The « Lomé Conventions » were replaced by the « Cotonou Convention », singed in the capital of Bénin in 2000. The accord came into force in 2003 and will remain in force for a period of 20 years. Its principal objective is to combat poverty.

This accord marks a new stage in the development policies of the EU, because it is the most ambitious and the most comprehensive.  In practice, it replaces commercial relations based on access to markets with more extensive commercial relations.  Moreover, the convention is based on a system which combines aid with commerce and aid with policies, including support for the participation of the civil population. It aims at reinforcing the political dimension of the partnership and at granting greater responsibilities to the ACP States, notably for one of the largest sums, budgetary assistance. The destination of part of the aid grant is decided directly by the recipient governments, according to a scheme jointly decided at the planning phase.

New procedures have been defined in order to confront the problems of violation of human rights:  if either human rights, the democratic principles or the legal systems have not been respected, then the EU could cancel the funding.

In addition, the EU agreed to special commercial concessions for the least developed countries (39 of the signatories): they can freely export almost all types of products into the EU market.  This measure has an effect which is limited by the subsidies of the Common Agricultural Policy which distorts competition within Europe and world-wide.

The « Cotonou Convention » also replaced the instruments of finance « STABEX » and « SYSMIN » with a new instrument, « FLEX ».

The ACP programs are financed by the « European Development Fund » (EDF) – which, in turn, is financed through direct payments by the member states, and hence is not part of the EU budget, and by loans from the European Investment Bank (EIB).

Information about the Cotonou Convention :
europa.eu/scadplus/leg/fr/lvb/r12101.htm

4.2.17. What is the role of the ECHO services and the Commission's EuropeAid ?

The European office for humanitarian aid (ECHO) was created in 1992. It is responsible for emergency humanitarian aid to victims of natural catastrophes (earthquakes, hurricanes, floods, droughts) and armed conflicts beyond the EU's borders. The humanitarian aid granted by the EU is characterised by three principal instruments: emergency aid, food aid and aid to refugees and persons internally displaced.

This aid is oriented directly at groups of people in distress, without distinction as to race, religion, or the political views of the governments.  In this way ECHO has intervened in crisis zones in more than one hundred countries worldwide – in particular, Iraq, Afghanistan, the Palestinian Territory several regions of Africa, Chechenia, Tajikistan, Nepal, Sri Lanka, several regions of Central America, where victims were furnished with equipment and emergency supplies as rapidly as possible.

ECHO also finances medical teams, experts in mine clearance, transport and logistical support.  In the course of its missions, ECHO works closely with humanitarian organisations as partners, i.e. non-governmental organisations, specialised agencies of the United Nations, and the Red Cross.

The office of EuropeAid, on the other hand, was established in 2001, and is responsible for the management of foreign aid.

EuropeAid is responsible for all phases of the « cycle of operations » (evaluation of programs, financing of projects, etc.) which assure the achievement of programs which have been organised by services of exterior relations and development aid.

Information about humanitarian aid :
europa.eu/scadplus/leg/fr/lvb/r10000.htm
europa.eu/scadplus/leg/fr/s05010.htm

4.2.18. How are member states represented at international level ?

EU representation remains dispersed, Member States having failed to agree on a joint representation in international bodies such as the International Monetary Fund (IMF*) and the World Bank. Their representation reflects more the historical background than their integration into the EU.

The Management Committee of the International Monetary Fund (IMF*) consists of five countries which have a single representative.  Of these, Germany, France and the United Kingdom have, each separately, fewer votes than the United States and Japan.  The Belgian/Austrian delegate, who represents 10 countries, of whom 7 are in the EU, has more votes than the three above mentioned countries.  Next, the Netherlands delegate, associated to the Ukraine, represents 11 countries, of which 4 are in the EU.  Spain is associated to 7 countries of Latin America, etc.

At the World Bank, the representations organised on the same model, with often – but not always – the same grouping.

At the United Nations, only France and the United Kingdom are permanent members of the Security Council, alongside China, the United States and Russia, while Germany is not a permanent member.  Other members of the Security Council are elected for terms of two years by the General Assembly.

The Council of the International Bank for Settlements is composed of 19 members, of whom 6 are ex-officio, who represent the central banks of several countries, including 5 EU members, and the representative of the United States Federal Reserve. The Governor of the European Central Bank is merely an elected member.

Information on the IMF :: www.imf.org/external/np/sec/memdir/eds.htm
Information on the  BIS : www.bis.org/about/board.htm

4.2.19. What has been the impact of these policies on the development of the EU's partners ?

It has to be noted that, while Europe had privileged relations with Africa, it remained behind in matters of development.

A very large number of factors explain this situation.

• No objective evalutaion – either for Africa or the rest of the world -  succeeded in providing evidence of a noticeable effect of foreign aid on the economic development of the recipient countries. Experts deplore the fact that development aid continues to be determined mainly by the interests of the donors more than those of the recipients. In the case of the EU this occurs despite the recognised efforts at dialogue and effective participation in the part of the recipients, as well as the implementation of unprecedented systems such as STABEX. This observation is particularly relevant to the poorest countries, who are not in the phase of getting their economies off the ground, something which is the case for the vast majority of African countries ;
• The EU, in common with other great blocs of industrialised countries, developed a policy of asymetric liberalisation of exchanges (the liberalisation concerned in the first instance the export products of the industrialised countries who continue to close their borders, or else subsidise products being exported to poor countries).  The Common Agricultural Policy – just as in the case of the commercial policies of other great powers (USA, China) – is in this case very disadvantageous for Africa ;
• The lack of a common EU foreign policy left the field open to commercial rivalries between Member States, who are not uninvolved in particularly disastrous situations in particular African countries ;
• In spite of ex-post evaluations, there was a lack of effective control of the development aid furnished by the EU, of which one part is under the control of the Member States (the FED and bilateral assistance) and an increasing fraction is implemented directly by the governments of recipient countries, whose management is not subject to the same rigour as do their counterparts in democratic countries;
• The dispersion of representation of the member states in international institutions does not permit them to exercise a determining influence in the management of international aid.

These concerns do not place in doubt the solidity of the foundation of foreign aid, which contributes to the relief of some particularly difficult humanitarian situations.  Half of the children in the world, however, who do not have access to quality basic education - 70 million in number - live in Africa. Illiteracy amongst young people, is increasing in Africa, whereas it is decreasing elsewhere in the world.  Moreover, we know the capital importance of level of education in the process of development.  Development is an endogenous process – we develop OURSELVES, we do not develop others.  An increasing fraction of the EU aid for Africa ought to be allocated to increasing the capacity of the people of Africa to choose for themselves their future.