REPORT on the draft Council Regulation establishing a financing instrument for cooperation with industrialised and other high-income countries and territories

29.11.2006 - (11877/2006 – C6‑0265/2006 – 2006/0807(CNS)) - *

Committee on International Trade
Rapporteur: David Martin

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the draft Council Regulation on establishing a financing instrument for cooperation with industrialised and other high-income countries and territories

(11877/2006 – C6‑0265/2006 – 2006/0807(CNS))

(Consultation procedure)

The European Parliament,

–   having regard to the draft Council Regulation (11877/2006)[1],

–   having regard to Article 181a of the EC Treaty, pursuant to which the Council consulted Parliament (C6‑0265/2006),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on International Trade (A6‑0430/2006),

1.  Approves the Council draft as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

Text proposed by the Council	Amendments by Parliament
Amendment 1 Recital 3
(3) The European Union and industrialised and other high income countries and territories have agreed to strengthen their relationship and to cooperate across the areas in which they have shared interests through a variety of bilateral instruments such as agreements, declarations, action plans and other similar documents.	(3) The European Union and industrialised and other high income countries and territories have agreed to strengthen their relationship and to cooperate across the areas in which they have shared interests through a variety of bilateral and multilateral instruments such as agreements, declarations, action plans and other similar documents.
Justification
The purpose of strengthening relations between the EU and the other developed and high income countries is to contribute to the consolidation of effective and democracy based international fora capable of addressing worldwide issues. Instruments used to strengthen the relationship and the cooperation should be based not only on bilateral but also on multilateral basis.
Amendment 2 Recital 4
(4) In accordance with the principles laid down in these instruments, the Community implements a cooperation policy aimed at creating an environment conducive to pursuing and developing its relations with those countries and territories. Cooperation activities help to create conditions likely to strengthen the European presence and visibility in these countries and encourage economic, commercial, academic, cultural and other exchanges and interaction between a diversified range of actors on each side.	(4) In accordance with the principles laid down in these instruments, the Community implements a cooperation policy aimed at creating an environment conducive to pursuing and developing its relations with those countries and territories. Cooperation activities should help to strengthen the European presence and visibility in these countries and encourage economic, commercial, academic, cultural and other exchanges, dialogues and interaction between the appropriate actors in the relevant sectors.
Justification
Amendment 3 Recital 4 a (new)
	(4a) The Community’s cooperation should contribute to the general objective of developing and consolidating democracy and the rule of law, and to the objective of respecting human rights and fundamental freedoms.
Justification
With the extension of the geographical coverage of the instrument, it is necessary, as in other instruments, to introduce this clause which mirrors the wording of article 181a itself.
Amendment 4 Recital 5 a (new)
	(5a) In order to achieve the objectives of this Regulation a differentiated approach should be pursueddepending on economic, social and political contexts, pursuing cooperation with partner countries or regions with specific, tailor-made programmes, based on their specific situation as well as on the Community's specific interests, strategies and priorities.
Justification
The diversification of activities and, particularly, the extension of the geographical coverage is an opportunity but also a great challenge. The reality is that the new regulation will bring together a highly heterogeneous group of countries and set of activities. Henceforth the need to introduce the "principle of differentiation" in both the recitals and the article (3) on general principles: an assessment of the specific situation of the partner countries and the specific interests of the Community in a given country should be the first step to decide on exact type of cooperation to be developed with a partner country.
Amendment 5 Recital 6 a (new)
	(6a) In implementing the Community's cooperation policy, greater complementarity and better harmonisation, alignment and coordination of procedures, both between the Community and its Member States and in relations with other actors, are essential to ensuring the consistency and effectiveness of cooperation.
Justification
As in other instruments for external assistance, the principle of complementarity should be included in both the recitals and the article on general principles.
Amendment 6 Article 1, paragraph 1
1. Community assistance shall support economic, financial and technical cooperation and other forms of cooperation falling within its sphere of competence, with industrialised and other high-income countries and territories.	1. Community financing shall support economic, financial and technical cooperation and other forms of cooperation falling within its sphere of competence, with the industrialised and other high-income countries and territories listed in Annex 1.
Justification
Reference to assistance is very misleading in this instrument. The notion of financing clarifies and simplifies the wording. In order to precisely identify the industrialised and other high-income countries and territories, a reference to the official list is desirable.
Amendment 7 Article 1, paragraph 2
2. The main aim of cooperation with these countries and territories shall be to provide a specific response to the need to strengthen links and to engage further with them on a bilateral, regional or multilateral basis. The cooperation activities will contribute to the creation of a more favourable environment for the development of the relations of the Community with these countries and territories and promote dialogue and Community’s strategic interests there.	2. Community cooperation with partner countries is pursued in accordance with Title XXI of the Treaty. The primary objective of such cooperation with these countries and territories shall be to provide a specific response to the need to strengthen links and to engage further with them in the areas listed in Article 4 on a bilateral, regional or multilateral basis in order to create a more favourable and transparent environment for the development of the relations of the Community with these countries and territories and promote effective dialogue while fostering the Community’s interests.
Justification
The proposed draft has several problems. First, it is necessary to frame the objectives within the appropriate treaty provisions. Second, the notion of "strategic interests" is unnecessarily political or even geopolitical. Third, the Community's interests should inform all cooperation under this instrument. The word "while" is therefore more suitable than the word "and".
Amendment 8 Article 2, paragraph 2
2. For the purpose of this Regulation, industrialised and other high income countries and territories shall comprise countries and territories listed in Annex 1 and are hereinafter referred to as “partner countries”. However, in duly justified circumstances and in order to foster regional cooperation, the Commission may decide when adopting action programmes referred to in article 6 that countries not listed in Annex 1 are eligible, where the project or programme to be implemented is of regional or cross border nature. Provisions may be made for this in the multi-annual cooperation programmes referred to in Article 5. The Commission shall amend this List in accordance with regular OECD/DAC reviews of its List of developing countries and inform the Council thereof.	2. For the purpose of this Regulation, industrialised and other high income countries and territories shall comprise countries and territories listed in Annex 1 and are hereinafter referred to as “partner countries”. However, in duly justified circumstances and in order to foster regional cooperation, the Commission, with the prior approval of the European Parliament, may decide when adopting action programmes referred to in article 6 that countries not listed in Annex 1 are eligible, where the project or programme to be implemented is of regional or cross border nature. Provisions may be made for this in the multi-annual cooperation programmes referred to in Article 5. Any amendment to the list in Annex 1 resulting from the regular OECD/DAC reviews of its List of developing countries shall be notified by the Commission to the European Parliament and the Council before the Commission adopts the required modifications.
Justification
Changes in the scope of the regulation shall involve the European Parliament.
Amendment 9 Article 3, paragraph -1 a (new)
	(-1a) The Community is founded on the values of democracy, the rule of law, good governance, respect for human rights, sustainable development and fundamental freedoms and seeks to develop and consolidate a commitment to these values in partner countries and regions through dialogue and cooperation.
Justification
With the extension of the geopgraphical coverage of the instrument, it is necessary, as in other instruments, to introduce this clause which was included by INTA and DCEC1.
Amendment 10 Article 3, paragraph 1
1. Measures financed under this Regulation shall cover areas of cooperation set out notably in the instruments, agreements, declarations and action plans, between the Community and the partner countries as well as areas pertaining to the Community's strategic interests.	1. Measures financed under this Regulation shall be consistent with the cooperation objectives set out in the instruments, agreements, declarations and action plans, between the Community and the partner countries and with the Community's own interests.
Justification
The amendment clarifies that activities pertinent to fulfilling the Community's interests should be pursued according to the objectives set out in the relevant instruments.
Amendment 11 Article 3, paragraph 2
2. When implementing measures under this Regulation, the Commission shall ensure that the cooperation projects are legally and substantially coherent with other relevant Community policies.	2. For all measures financed under, and all areas of cooperation covered by, this Regulation, the Community shall ensure that cooperation is legally and substantially coherent with the different areas of external action and other relevant Community policies. Such coherence shall be ensured in formulating policy, strategic planning and the programming and implementation of measures.
Justification
The general principle of coherence should be, as in other instruments for external assistance, included in the text.
Amendment 12 Article 3, paragraph 2 a (new)
	(2a) In the implementation of this Regulation it is necessary to pursue a differentiated approach depending on economic, social and political contexts, pursuing cooperation with partner countries or regions with specific, tailor-made programmes, based on their specific situation as well as on the Community's specific interests, strategies and priorities.
Justification
The diversification of activities and, particularly, the extension of the geographical coverage is an opportunity but also a great challenge. The reality is that the new regulation will bring together a highly heterogeneous group of countries and set of activities. Henceforth the need to introduce the "principle of differentiation" in both the recitals and the article (3) on general principles.
Amendment 13 Article 3, paragraph 2 b (new)
	(2b) The Community and the Member States shall improve coordination and complementarity of their policies, programmes and implementation of measures with partner countries and regions.
Justification
As in other instruments for external assistance, the principle of complementarity should be included in both the recitals and the article on general principles.
Amendment 14 Article 4, introductory part
Community assistance shall support cooperation actions consistent with Article 1 and shall be consistent with the overall purpose, scope, objectives and general principles of this Regulation. Specific attention shall be paid to actions in the following areas of cooperation:	Community financing shall support cooperation actions consistent with Article 1 and shall be consistent with the overall purpose, scope, objectives and general principles of this Regulation. Community financing shall cover the following types of activities:
Justification
Clarifies that cooperation is in the form of financing. The types of activities to be financed should be carefully and clearly defined. The word activity is used in article 5.1 and seems more appropriate. The amendment also simplifies the text and removes the "open-ended" nature of the original text.
Amendment 15 Article 4, point 1
(1) the promotion of cooperation, partnerships and joint undertakings between economic, academic and scientific actors in the Community and other partner countries;	(1) the promotion of cooperation, partnerships and joint undertakings between economic, academic and scientific actors, including small and medium-sized enterprises, in the Community and other partner countries;
Justification
Small and Medium-sized Enterprises should have a specific role in trade-related activities, particularly economic partnerships.
Amendment 16 Article 4, point 3
(3) the promotion of dialogues between political, economic and social actors and other non-governmental organisations in relevant sectors in the Community and partner countries;	(3) the promotion of dialogues between political, economic and social actors including small and medium-sized enterprises and other non-governmental organisations in relevant sectors in the Community and partner countries;
Justification
Small and Medium-Sized Enterprises should have a specific role in trade-related activities.
Amendment 17 Article 5, paragraph 1
1. Actions to promote cooperation under this Regulation shall be carried out in the framework of multi-annual cooperation programmes covering cooperation in appropriate areas of activity with all or with a selection of the partner countries. The Commission shall draw-up the multi-annual cooperation programmes and specify their scope.	1. All actions to promote cooperation under this Regulation shall be carried out in the framework of multi-annual cooperation programmes covering cooperation in the appropriate areas of activity referred to in Article 4 with all or with a selection of the partner countries. The Commission , after consulting the European Parliament, shall draw-up the multi-annual cooperation programmes and specify their scope.
Justification
All actions without exception should be part of one or another multiannual cooperation programme. Article 4 (areas of cooperation) should be referred to in this article. A role of the European Parliament must be foreseen.
Amendment 18 Article 5, paragraph 2
2. Cooperation programmes shall cover no more than the period of validity of this regulation. They shall set out the Community's strategic interests and priorities, general objectives and expected results. They shall set out also the areas selected for financing by the Community and outline the indicative financial allocation of funds, overall, per priority area and per partner country or group of partner countries for the period concerned. This may be given in the form of a range, where appropriate. Cooperation programmes shall be reviewed at mid-term, or ad hoc if necessary.	2. Multi-annual cooperation programmes shall cover no more than the period of validity of this regulation. They shall set out the Community's strategic interests and priorities, general objectives and results to be achieved. They shall set out also the areas selected for financing by the Community and outline the indicative financial allocation of funds, overall, per priority area and per partner country or group of partner countries for the period concerned. This may be given in the form of a range, where appropriate. Multi-annual cooperation programmes shall be reviewed at mid-term, at the request of the European Parliament or ad hoc if necessary.
Justification
"Cooperation programmes" should be consistently referred to as "Multiannual cooperation programmes" throughout the regulation. More stringent wording as regard the results to be achieved is required. A role of the European Parliament must be enhanced.
Amendment 19 Article 5, paragraph 3
3. Cooperation programmes and any reviews thereof shall be adopted by the Commission in accordance with the management procedure set out in Article 14(2).	3. Multi-annual cooperation programmes and any reviews thereof shall be adopted by the Commission in accordance with the management procedure set out in Article 14(2).
Justification
See Amendment on Article 5, paragraph 2
Amendment 20 Article 6, paragraph 3
3. The action programmes shall be adopted by the Commission in accordance with the management procedure set out in Article 14(2). This procedure needs not be used for amendments to action programmes, such as those making technical adjustments, extending the implementation period, reassigning funds between the planned operations within the forecast budget, or increasing or reducing the size of the budget by less than 20% of the initial budget, provided these amendments are consistent with the initial objectives set out in the action programmes.	3. The annual action programmes shall be adopted by the Commission in accordance with the management procedure set out in Article 14(2). This procedure needs not be used for amendments to action programmes, such as those making technical adjustments, extending the implementation period, reassigning funds between the planned operations within the forecast budget, or increasing or reducing the size of the budget by less than 20% of the initial budget, provided these amendments are consistent with the initial objectives set out in the action programmes.
Justification
Action programmes referred to in article 6 are "annual" action programmes.
Amendment 21 Article 7, point 2
(2) Partner countries and their institutions and decentralised bodies;	(2) Partner countries and regions and their institutions and decentralised bodies;
Justification
As in other instruments for external assistance there is no reason to exclude "regions".
Amendment 22 Article 9, paragraph 3
3. The Commission shall adopt support measures not covered by the multi-annual programmes and shall inform Member States thereof.	The Commission shall adopt support measures not covered by the multi-annual programmes and shall inform the Member States and the European Parliament thereof.
Justification
Support measures not covered by the multi-annual programmes shall be precised in a greater detail and the role of the European Parliament must be foreseen.
Amendment 23 Article 10, paragraph 1, point (a)
(a) Member States, and in particular their public and parastatal agencies;	(a) Member States and their regional and local authorities, and in particular their public and parastatal agencies;
Justification
As in other instruments for external assistance there is no reason to exclude "regions" and "local authorities".
Amendment 24 Article 11 b (new)
	Article 11b
	Protecting the Community’s financial interests
	(1) Any agreements resulting from this Regulation shall contain provisions ensuring the protection of the Community’s financial interests, in particular with respect to irregularities, fraud, corruption and any other illegal activity, in accordance with Council Regulations (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests1 and (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities2, and Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF)3.
	(2) Agreements shall expressly entitle the Commission and the Court of Auditors to perform audits, including document audits or on the spot audits of any contractor or subcontractor who has received Community funds. They shall also expressly authorise the Commission to carry out on-the-spot checks and inspections as provided for in Regulation ( Euratom, EC,) No 2185/1996.
	(3) All contracts resulting from the implementation of assistance shall ensure the rights of the Commission and the Court of Auditors under paragraph 2 during and after the performance of the contracts.
	1 OJ L 312, 23.12.1995, p. 1. 2 OJ L 292, 15.11.1996, p. 2. 3 OJ L 136, 31.5.1999, p. 1.
Justification
As in other instruments for external assistance, this article is important enough to be explicitly included.
Amendment 25 Article 12, paragraph 1
1. The Commission shall regularly evaluate the actions and programmes financed under this Regulation in order to ascertain whether the objectives have been met and enable it to formulate recommendations with a view to improving future operations.	The Commission shall regularly evaluate the actions and programmes financed under this Regulation in order to ascertain whether the degree of achievement of the objectives originally set out, the cost-effectiveness of the measures financed by the Community and their impact have been satisfactory. On this basis, the Commission shall formulate recommendations with a view to improving future operations.
Justification
In order to improve future operations, the Commission must evaluate not only whether the objectives have been met, but to what extend they have been met and whether the operation has been cost-effective.
Amendment 26 Article 12, paragraph 1a (new)
	(1a) The evaluation reports shall be carried out by means of independent external evaluations where appropriate or at the request of the European Parliament or the Council.
Justification
This important caveat, included in DCECI/DCI for instance, should be added to the legal text.
Amendment 27 Article 12, paragraph 2a (new)
	(2a) The Commission shall associate all relevant stakeholders, including non-State actors, in the evaluation phase of the Community cooperation provided for under this Regulation.
Justification
This important caveat, included in DCECI/DCI for instance, should be added to the legal text.
Amendment 28 Article 12, paragraph 2b (new)
	(2b) A limited proportion of the annual budget shall be used to finance evaluation studies of the actions and programmes undertaken in the framework of this Regulation.
Justification
This important caveat, included in DCECI/DCI for instance, should be added to the legal text.
Amendment 29 Article 13
The Commission shall examine the progress made on implementing the measures taken under this Regulation and shall submit every two years to the European Parliament and the Council a report on the implementation of this Regulation. The report shall set out the results of implementation of the budget and present the actions and programmes financed.	The Commission shall examine the progress made on implementing the measures taken under this Regulation and shall submit every two years to the European Parliament and the Council a detailed report on the implementation of this Regulation. The report shall set out the results of implementation of the budget and present all the actions and programmes financed and, as far as possible, set out the main outcomes and impacts of the cooperation actions and programmes.
Justification
In the future reports should be more detailed and should contain a reference to the main outcomes and impacts of the cooperation actions and programmes.
Amendment 30 Article 14, paragraph 4
4. The Commission shall regularly inform the European Parliament of the Committee proceedings and provide the relevant documents including agenda, draft measures and summary records of the meetings.	4. The Commission shall regularly inform the European Parliament of the Committee proceedings and provide the relevant documents including agenda, draft measures and detailed summary records of the meetings.
Justification
The European Parliament must be properly informed.
Amendment 31 Article 15
The amount of Community funding deemed necessary for the implementation of the actions identified in this Regulation will be established by the budget authority on an annual basis within the limits of the financial perspectives.	The financial reference amount for the implementation of this Regulation for the period from 2007 to 2013 shall be EUR 172 million. The annual amount of Community funding deemed necessary for the implementation of the actions identified in this Regulation will be established by the budget authority on an annual basis within the limits of the financial framework.
Justification
This amendment includes the financial reference amount for this instrument included in the agreement on the Financial Framework 2007-2013.
Amendment 32 Article 15 a (new)
	Article 15a
	Review
	By 31 December 2010, the Commission shall submit to the European Parliament and the Council a report evaluating the implementation of this Regulation in the first three yearswith, if appropriate, a legislative proposal introducing the necessary modifications.
Justification
There is no reason to forget the "review clause" as included and agreed in the other instruments for external assistance, particularly given the substantial changes introduced.

• [1]  Not yet published in the Official Journal.

EXPLANATORY STATEMENT

I. Institutional Background: From DCECI to ICI

As the Committee responsible for "financial, economic and trade relations with third countries" (i.e. both developing and non-developing countries), the Committee on International Trade (INTA) has been involved in the parliamentary scrutiny of the 4 new financial instruments. INTA had a particular interest in the proposal for a regulation establishing a financing instrument for development and economic cooperation (DCECI), the largest of the new external aid instruments in funding and scope, as well as on "economic co-operation" related issues at large.

The DCECI was originally referred to the Committee on Development (DEVE) as lead committee and to the INTA for opinion with enhanced co-operation. In March 2005, this proposal was rejected by a unanimous vote in DEVE, supported by three unanimous opinions, including INTA's first opinion[1]. At that time, your rapporteur was forced to conclude that the proposal was unacceptable mainly because of the substantial erosion of the powers of Parliament.

After the first rejection in committee, negotiations and trilateral meetings (European Parliament, Council and Commission) were held in order to discuss the reform of the instruments. In December 2005, DEVE judged that progress at the negotiation table was sufficient to request that the report be referred back to committee for examination within the normal course of the co-decision procedure. Your rapporteur presented then its second draft opinion which was subsequently adopted by INTA[2]. Contrary to the position of the Development Committee, your rapporteur argued that both economic co-operation and development co-operation should be maintained, as proposed by the Commission, in one and the same regulation. The vote in INTA upheld this logic of the "two chapters - one instrument". Placing economic co-operation and development co-operation under one co-decided instrument would have allowed Parliament to gain co-decision on economic co-operation, as had been requested by Parliament and was provided for in the Constitutional treaty.

Despite INTA's opinion, in the course of the inter-institutional negotiations, the European Parliament agreed with Council to the separation of the DCECI in two distinct and separate instruments: one for cooperation with developing countries and one for cooperation with industrialised (developed) countries, which is the subject of the current report for which INTA is the lead committee.

II. The new proposal: Main Changes

The Council proposal (based on the Commission's draft text) for a new regulation, replaces Council Regulation 382/2001 which is due to expire on 31 December 2007. It is largely in line with the Commission Communication on the Thematic Programme on Cooperation with Industrialised and other High-income Countries under the future Financial Perspectives (2007-2013), released in January.

The new proposal introduces a number of substantial changes that distinguish it from the existing regulation.

1. Change of Legal Base

There is, firstly, a change in the legal base: from Article 133 in the old regulation to the new Article 181a (introduced by the Treaty of Nice) which specifically covers economic, financial and technical cooperation with third countries.

2. Broader Geographical Coverage

One of the more notable changes in the proposed regulation is the extension of its geographical coverage from the current 6 OECD countries US, CAN, AUS, JAP, NZ, KOREA to a more heterogeneous group of 17 countries, including the NICs from Asia - Singapore, Brunei, Hong Kong, Taipei, Macao and the Gulf Cooperation Council countries - UAE, Kuwait, Oman and Bahrain. It is also envisaged that, by way of exception, cooperation with the two remaining GCC countries (Saudi Arabia and Qatar) which are still listed by the OECD DAC as developing countries ("upper middle income" countries) will also be carried out under this instrument.

3. Diversification of Activities and Objectives

The rationale of the instrument also moves from a dual logic (based on (a) the development of projects aimed at reinforcing bilateral cooperation with all the partner countries across a broad range of areas, and, b) the promotion of commercial relations with an exclusive focus on Japan and Korea) to a single framework for widening and deepening cooperation and engagement with all partners. In line with the priorities for cooperation with Industrialised Countries indicated in the Communication on the thematic programmes, the proposed regulation will fund programmes and projects which meet the following main operational objectives:

1. Public diplomacy and outreach

2. Promotion of economic partnership and business

3. People to people links/education cooperation

4. Dialogues

5. Evaluation and small scale cooperation projects

As a result of the new logic, programmes funded under the existing regulation, such as, inter alia, the highly successful Executive Training Programme to Japan and Korea and the EU Gateway to Japan programme could be extended to other countries.

At the same time, your rapporteur wants to emphasize the possibility to expand the existing network of EU Centres to a broader range of countries as centres of excellence by which to raise the visibility and profile of the Union.

The diversification of activities, and, particularly, the extension of the geographical coverage, represent an opportunity but also a great challenge. Unlike the current regulation, the new regulation will bring together a highly heterogeneous group of countries and set of activities. The Commission will therefore have to prove that the promotion of diversified bilateral cooperation initiatives with highly diverse industrialised and other high-income countries within a single instrument will indeed allow, as stated in the recital 5 of the proposal, economies of scale, synergy effects, greater effectiveness and visibility for the Community action.

4. Financial Envelope

To accommodate the increased geographical coverage and extension of scope there is a substantive increase (from EUR 16m to 22.2m a year) in the budgetary resources committed to this instrument as provided for in the PDB and DB 2007. This increase is reasonable and to be welcome. Under current and past projected expenditure approximately 2/3 of funds are allocated to the EU Centres, the ETP and the Gateway Programme. It is to be expected that the great majority of the new funds will be directed to new partner countries.

5. Programming and the need for an urgent needs assessment study.

With the advent of the new instrument, the Commission will introduce quasi-standard programming practices for the first time over this area of economic cooperation activities which were administered on a more ad hoc basis under the previous instrument. Your rapporteur welcomes this development as programming should translate into more transparent, effective and efficient projects and programmes.

The Commission should inform the Parliament as soon as possible on the number and nature of the multiannual cooperation programme/s it will choose. Before programming though, given the diversification and extension of the cooperation (particularly, economic cooperation) to a number of new countries, a comprehensive needs assessment study should be carried out as a matter of urgency in order to inform and guide the programming phase, particularly with regard to activities in the new countries.

 III. Amendments

The amendments tabled by the rapporteur can be summarised along 3 main headlines:

First to clarify and simplify the drafting of the proposal; second, to bring the proposal in line with other external instruments for financial assistance; and third, to improve Parliament's scrutiny of this instrument and involvement in programming.

1. Tightening and clarifying the proposal

A number of amendments are introduced in order to bring clarity and consistency to some aspects of the wording of the proposal. Most notably, your rapporteur finds the notion of EU "strategic interest" problematic in a legal text. Your rapporteur agrees in principle with the Commission's views on the nature of this instrument which, unlike other "assistance" instruments, should also reflect the needs and interests of the EU. However, the notion of "strategic" interests is unnecessarily political or even geopolitical.

2. Bringing ICI into line with other external instruments

Your rapporteur has included a number of highly relevant articles/clauses/recitals which are included in other instruments for external assistance:

Review Clause

Given the substantial changes introduced in the new proposal, with the extension from

6 to 17 countries, there is no reason to forget the "review clause" included in the other instruments for external assistance. This proposal is a new departure, involving new countries and activities. The Commission itself may want to propose adjustments for the mid-term review.

Human Rights/Democracy Clause

With the extension of the geographical coverage of the instrument, it is necessary, as in other instruments, to introduce a Human Rights/Democracy Clause. The wording in the proposed new recital mirrors the wording of article 181a itself.

Your rapporteur sees no reason not to include it here, particularly given the heterogeneous group of countries with whom the EU intends to develop cooperation: NICs from Asia like Singapore, Brunei, Hon Kong, Taipei, Macao or Gulf Cooperation Council Countries like UAE, Kuwait, Oman and Bahrain or Saudi Arabia.

General Principles

The section on general principles is incomplete: Complementarity and Coherence of cooperation are two important principles which should be included.

The new regulation will bring together a highly heterogeneous group of countries and set of activities. Henceforth the need to also introduce the "principle of differentiation" in both the recitals and the article on general principles: an assessment of the specific situation of the partner countries and the specific interests of the Community in a given country should be the first step to decide on the exact type of cooperation to be developed with a partner country.

Protecting the Community’s financial interests

The specific article on the protection of the Community’s financial interests should be included as in other instruments for external assistance.

3. The role of Parliament

Your rapporteur believes that the role of the European Parliament should be strengthened with regard to the evaluation, reporting mechanisms and its involvement in a structured dialogue over multiannual cooperation programmes.

• [1]  PE 355.337v02-00 of 13.3.2006.
• [2]  PE 360.000v03-00 of 21.3.2006.

PROCEDURE

Title	Proposal for a Council regulation establishing a financing instrument for cooperation with industrialised and other high-income countries and territories
References	118773/2006 – C6-0265/2006 – 2006/0807(CNS)
Date of consulting Parliament	1.8.2006
Committee responsible   Date announced in plenary	INTA 5.9.2006
Committee(s) asked for opinion(s)   Date announced in plenary	AFET 5.9.2006		DE VE 5.9.2006	BUDG 5.9.2006
Not delivering opinion(s)   Date of decision	AFET 10.10.2006		DEVE 6.11.2006	BUDG 27.9.2006
Enhanced cooperation   Date announced in plenary
Rapporteur(s)   Date appointed	David Martin 11.7.2006
Previous rapporteur(s)
Simplified procedure – date of decision  Date of decision
Legal basis disputed   Date of JURI opinion
Financial endowment amended   Date of BUDG opinion
Parliament to consult European Economic and Social Committee – date decided in plenary
Parliament to consult Committee of the Regions – date decided in plenary
Discussed in committee	11.9.2006		3.10.2006
Date adopted	22.11.2006
Result of final vote	+: –: 0:	22 . 0 0
Members present for the final vote	Kader A0rif, Jean-Pierre Audy, Enrique Barón Crespo, Jean-Louis Bourlanges, Daniel Caspary, Françoise Castex, Christofer Fjellner, Béla Glattfelder, Jacky Henin, Syed Kamall, Caroline Lucas, Erika Mann, Helmuth Markov, David Martin, Georgios Papastamkos, Godelieve Quisthoudt-Rowohl, Tokia Saïfi, Gianluca Susta
Substitute(s) present for the final vote	Panagiotis Beglitis, Harlem Désir, István Szent-Iványi, Mauro Zani
Substitute(s) under Rule 178(2) present for the final vote
Date tabled	29.11.2006
Comments (available in one language only)	...