News Release
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Chris Patten |
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No. 60/03
October 1, 2003
IRAQ RECONSTRUCTION
CONFERENCE IN MADRID:
EU COMMISSION PROPOSES CONSOLIDATED EUROPEAN
PLEDGE
The
European Commission today adopted a
Communication setting out proposals for the European Union's position at the
Madrid Conference on Reconstruction in
Iraq. The Communication suggests that Europe should offer a consolidated pledge
at Madrid, bringing together the contribution from the EU budget and the individual
contributions from EU member states. It is proposed that EUR 200 million should
be made available from the EU budget for reconstruction in Iraq in the initial
period up to the end of 2004. EUR 100 million in humanitarian assistance from
the EU budget is already being deployed in Iraq. The Communication outlines a
common approach, stressing that success will depend on three factors: security,
transfer of power to the Iraqi people and a multilateral framework for reconstruction
including the creation of a multi-donor trust fund. It notes the importance of
involving Iraq's neighbors in the reconstruction process from the start.
Chris Patten,
EU External
Relations Commissioner, said “Whatever the depth of division in the international
community over the war, we all have a stake in a stable, open, democratic
Iraq. In Madrid,
Europe will play its part in the international
effort to lay the first foundations for bringing about a better life for the Iraqis
under their own representative government. The worrying security situation should
not hold us back from planning for Iraq's
political and physical reconstruction. The more international legitimacy we can
bring to this project the more likely it is to succeed."
Michaele
Schreyer, EU Budget
Commissioner, said, “The Commission's proposal is based on a realistic assessment
of resources available for external actions. The figure compares well with the
pledge we made for reconstruction aid for Afghanistan, of EUR 1 billion over five years. It demonstrates clearly
our commitment to building a better future for Iraq
and all its people."
At
the European Council in
Thessaloniki, the European Union confirmed its readiness to participate in
the reconstruction of Iraq within the framework
of UN Security Council Resolution 1483 and invited the Commission to submit proposals.
The Communication, “The Madrid Conference on Reconstruction in Iraq, 24 October
2004,” which has been put forward by Commissioner for External Relations Chris
Patten in agreement with the Commissioner for the European Community Budget, Michaele
Schreyer, responds to this invitation.
The
Madrid Conference will aim to reach a consensus on the framework and priorities
for international efforts to boost the reconstruction process and seek financial
commitments until the end of 2004. The Communication sets out three factors that
will be key to the success of the reconstruction effort:
- An
improvement in the security situation;
- A
clear commitment to the establishment of a sovereign Iraqi government;
- The
creation of a transparent and operational multilateral framework for reconstruction.
Success
will also depend on the involvement of Iraq's neighbors,
notably Turkey, Jordan, Syria, the Gulf Co-operation Council States (GCC) and
Iran.
The
Communication proposes that the European Union should make a single pledge at
Madrid, combining funds provided from the Community
budget and the member states. The Commission will propose to the Council and European
Parliament that EUR 200 million be made available from the Community budget for
reconstruction in Iraq until the end of 2004. This pledge takes into account needs
assessments coordinated by the United Nations and the World Bank, in which European
Commission staff participated. It is a substantial, but realistic pledge, reflecting
the operating environment in Iraq.
Priorities
for Community assistance would include support in areas such as institutional
and capacity-building, creating a social safety net, health, water and sanitation,
education, employment, as well as the strengthening of civil society and the protection
and promotion of human rights and democracy. Assistance would be channeled via
the United Nations bodies and NGOs and, once established, a Multi-Donor Trust
Fund for Iraq implemented by the World Bank and
the United Nations. This Trust Fund would operate separately from, but in co-operation
with, the funds managed by the Coalition Provisional Authority.
The
European Commission today also adopted the necessary budgetary proposal to mobilize
EUR 200 million for the period up to the end of 2004. In the remaining months
of 2003 EUR 40 million would be found within the existing External Relations budget.
This is on top of the EUR 100 million in humanitarian aid that ECHO is implementing
in 2003.
Since
reconstruction funding for Iraq is not covered
in the preliminary draft budget for 2004, the Commission proposes to create a
new budget line for Iraq (article 19 08 07 “Aid for rehabilitation and reconstruction
of Iraq”) of EUR 160 million.
The sum would be found by taking EUR 86 million from unbudgeted resources in the
External Relations budget (the “margin” under Heading 4) and by using the “flexibility
instrument” to mobilize a further EUR 74 million. This instrument makes it possible
to go beyond the ceiling set for the External Relations budget, so that the proposed
funding for Iraq does not cause any reduction in what is planned for other countries
and regions. This proposal requires an “amending letter” from the Commission to
the Council and the European Parliament and is subject to approval under the usual
annual budget procedure.
Commissioner
Patten visited
Baghdad on 17 September to assess conditions in the country and priorities
for assistance, in the run-up to the Madrid Conference. During the visit Commissioner
Patten met representatives from the United Nations and paid his respects at the
office of the late Special Representative Sergio Vieira de Mello. He held talks
with Iraqi civil society and leading members of the Iraq Governing Council including
Chairman Ahmed Chalabi and met Interim Foreign Minister Hoshyar Zebari and the
Interim Minister of Public Works, Nisrin Mustafa al-Barwari. At the Coalition
Provisional Authority, he had the opportunity to meet Ambassador Paul Bremer and
Sir Jeremy Greenstock.
For
more information about EU relations with Iraq:
http://europa.eu.int/comm/external_relations/iraq/intro/index.htm.
For
more on EU humanitarian aid to Iraq:
http://europa.eu.int/comm/echo/field/iraq/index_en.htm.
EUR
1.00 = $1.1671 on Wednesday October 1, 2003
Press Contacts: |
Willy Hélin
202-862-9530
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Anthony Gooch
202-862-9523
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Maeve O'Beirne
202-862-9549
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