Identifier
Created
Classification
Origin
05BRUSSELS2469
2005-06-28 11:06:00
UNCLASSIFIED
Embassy Brussels
Cable title:  

EUROPEAN COMMISSION FUNDING PROCESS FOR

Tags:  EAID KCRM SNAR EUN USEU BRUSSELS 
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UNCLAS SECTION 01 OF 02 BRUSSELS 002469 

SIPDIS

FOR INL/PC SCOTT HARRIS; DEPARTMENT PASS TO ONDCP CHARLOTTE
SISSON

E.O. 12958: N/A
TAGS: EAID KCRM SNAR EUN USEU BRUSSELS
SUBJECT: EUROPEAN COMMISSION FUNDING PROCESS FOR
COUNTER-NARCOTICS EFFORTS

REF: 04 BRUSSELS 5221

UNCLAS SECTION 01 OF 02 BRUSSELS 002469

SIPDIS

FOR INL/PC SCOTT HARRIS; DEPARTMENT PASS TO ONDCP CHARLOTTE
SISSON

E.O. 12958: N/A
TAGS: EAID KCRM SNAR EUN USEU BRUSSELS
SUBJECT: EUROPEAN COMMISSION FUNDING PROCESS FOR
COUNTER-NARCOTICS EFFORTS

REF: 04 BRUSSELS 5221


1. Summary. The European Commission (EC) identifies only
six million euros annually for counter-narcotics programs,
although other funds come from country or region-specific
allocations in high-risk areas. Although changes are
proposed for the structure and size of the European
Commission assistance budget, the EC will likely continue to
make its assistance decisions based primarily on geography -
assistance to countries and regions rather than to themes
such as counter-narcotics. End Summary.


2. USEU NAS met with Francisco (Paco) Bataller-Martin, DG
Relex (External Relations) Coordinator for European
Commission (EC) funding for counter-narcotics efforts.
Purpose of the meeting was to discuss the process used in
deciding the European Commission's (EC) assistance program.
Bataller said that the only EC project specifically for
counter-narcotics is a Euro 6 million yearly project entitled
"North-South Cooperation in the fight against drugs." This
project was begun in 2002, did not receive funding in
2003-2004, and received funding again in 2005.
Counter-narcotics projects have been funded under other
rubrics such as rural development or social projects. The EC
is presently in the process of completely overhauling its
assistance budget organization. Budget lines are expected to
be consolidated from the current 90 funding instruments into
six principal instruments: pre-accession assistance, European
Neighborhood and Partnership, Development Cooperation and
Economic Cooperation, Stability, Humanitarian Aid, and Macro
Financial Assistance. However, the EC will likely continue
to make its assistance decisions based primarily on geography
- assistance to countries and regions rather than to themes
such as counter-narcotics.

Assistance Criteria
--------------


3. The EC system for allocating foreign assistance resources
is based on a strict formula which attempts to make the
decision-making process objective, transparent, predictable,
and, most of all, apolitical. This formula uses several
economic factors such as per capita income, population,
absorptive capacity, and a needs index. Based upon these
criteria, DG Relex proposes assistance to a given country or

region through an EU Country Strategy Paper. This is a
programming document which analyses the development needs of
the country or region, its political situation, what the EC
has done there in the past, what other donors are doing, etc.
The paper is developed in consultation with DG Development,
the EC Mission in the field, and the host country government.
After it is shared with the Member States, the document is
forwarded to the college of commissioners who approve or
reject the proposal. Once a positive decision is made by the
commissioners, there is no flexibility from year to year in
allocating funds for this strategy unless circumstances
warrant. In that case, the Strategy Paper must be revised.
The Strategy is then given over to AIDCO, the EC equivalent
to USAID, for implementation. Working closely with the EC
Delegation in the field, AIDCO hires the consultants and
monitors implementation. This process limits the areas for
cooperation. Counter-narcotics assistance falls under the
broad categories of rural development, social development,
health, etc. Reftel provides background on overall EC and EU
member state development assistance globally.

Project Descriptions
--------------


4. Bataller's office in DG Relex coordinates overall EC
assistance policy for counter-narcotics. However, once a
country strategy paper is approved, individual discreet
activities fall under the purview of AIDCO which keeps the
project descriptions. Thus Bataller was unable to provide
specific information on what was being done in Afghanistan
and Colombia, but did promise to seek this from AIDCO.

Overview of EC Counter-narcotics activities
--------------


5. There are few countries and regions receiving EC
assistance for counter-narcotics: the Andean region and
Brazil (alternative development and precursors),the
Caribbean (supply control),Central Asia (supply control),
Afghanistan (treatment and supply control),Pakistan (demand
reduction) and Myanmar (harm reduction). NAS inquired
specifically about the EC program in Afghanistan. Bataller
said the EU pledged Euro one billion (USD 1.3 billion) in
assistance to Afghanistan in 2002 in Tokyo. These funds are
being disbursed in tranches of Euro 200 million per year over
a five-year period. The annual tranches are divided among
alternative development activities (approx. Euro 10 million),
police assistance (approx. Euro 90 million) and the balance
(Euro 100 million) for alternative development,
reconstruction, rural development, roads, and home
construction). USEU Development Counselor advises the EC is
considering providing Euro 15 million to the new UK Trust
Fund for Afghanistan as they are interested in further
developing work in the justice sector (police assistance) as
part of their new strategy which comes on line in 2007. The
EC is in the process of putting a project proposal together
now, with a view to gaining approval by the first week of
September in time for Commissioner Ferrer-Waldner's trip to
Afghanistan. Since 2002, the EC has provided over Euro 657
million to Afghanistan in reconstruction aid. For 2005 and
2006, at least Euro 376 million will be delivered, taking the
Commission's reconstruction aid to Afghanistan above the Euro
1 billion pledge in 2002. These figures do not include
humanitarian assistance of Euro 216 million which has so far
been delivered over the 2002-2004 period.

Comment
--------------


6. Counter-narcotics is not among the broad categories of
assistance in the EC budget, which means this EU policy
objective does not receive much focus. Also,
"counter-narcotics" in EU parlance can mean any kind of rural
development activity which enables the population to earn an
alternative living to producing drugs or which betters their
standard of living so that they need not rely upon income
from narcotics.

McKinley
.