CHANGES IN EC MINE ACTION FUNDING

UNCLAS USEU BRUSSELS 003189 SIPDIS SENSITIVE SIPDIS FOR PM/WRA STACY DAVIS, DEREK KISH E.O. 12958: N/A TAGS: PREL KHDP SOCI PARM EAID EUN SUBJECT: CHANGES IN EC MINE ACTION FUNDING REF: A. STATE 111654 ¶B. BRUSSELS 04 04438 ¶1. (U) USAID Special Assistant delivered demarche contained in reftel to Laura Figuori of the European Commission's Directorate General for External Relations, Security Policy Unit. Figuori was a member of the now dismantled operational unit which managed mine action funding. ¶2. (SBU) According to Figuori, the rationale for eliminating the horizontal budget line supporting mine action must be considered in the context of the overall reform of EC external assistance. Historically, the EC has provided assistance by way of numerous financial instruments, each with its own legal basis. For greater policy coherence, beginning with the 2007-13 budget, the EU agreed to consolidate these instruments into seven broader instruments including "the Stability Instrument" under which a large portion of mine action funds will be managed (see Ref B). ¶3. (SBU) The horizontal budget line was eliminated, as explained by Liguori, "to increase efficiency of EC mine action" and to bring mine action funding in line with the reform process by incorporating the funds into bilateral country programs. The Commission does not view this as a decrease in funding, but rather as a mere reorganization, and so appears unconcerned that this change will influence the complementarity of EC and U.S. programs. They have in effect mainstreamed this activity into country budgets. ¶4. (SBU) Comment: Given the high degree of devolution of EC external assistance to its field delegations and a commensurate reduction of technical expertise in Brussels, a more technical discussion between U.S. and EC colleagues/implementers in mine-affected countries may be useful to determine if, and where, problems may arise. The EC is aware the U.S. may approach specific EC missions we consider potentially "at risk" for further discussion. GRAY .