US embassy cable - 05BRUSSELS2469

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 
.