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C/02/210 10945/02 (Presse 210)

2447th Council meeting

- GENERAL AFFAIRS AND EXTERNAL RELATIONS -

Brussels, 22 July 2002

President :

Mr Per Stig MØLLER

Minister for Foreign Affairs of the Kingdom of Denmark

CONTENTS (1)

PARTICIPANTS 4

ITEMS DEBATED

WORK PROGRAMME FOR THE PRESIDENCY 5

ENLARGEMENT 6

FOLLOW UP TO THE EUROPEAN COUNCIL IN SEVILLE 7

    - Modification of the Council's Rules of procedure 7

    - List of open debates 7

    - Kaliningrad 7

PROGRESS OF WORK IN OTHER COUNCIL CONFIGURATIONS 8

EU's PRIORITIES IN THE AREA OF CONFLICT PREVENTION - Council conclusions 9

MIDDLE EAST - Council conclusions 10

WESTERN BALKANS - Council conclusions 11

FOOD CRISIS IN SOUTHERN AFRICA - Council conclusions 13

ZIMBABWE - Council conclusions 14

AFGHANISTAN - Council conclusions 15

INDIA/PAKISTAN 17

PREPARATION OF THE WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT - Council conclusions 18

EUROPEAN SECURITY AND DEFENCE POLICY 21

PEREJIL ISLET 21

ITEMS APPROVED WITHOUT DEBATE I

TRADE POLICY

  • Steel - Council conclusions I

  • Antidumping duty on bicycles from Taiwan II

  • Countervailing duty on sulphanilic acid from India II

  • Anti-dumping duty on sulphanic acid from China and India II

  • Commodities: International Rubber Study Group - participation of the Community II

  • Export credits for ships * II

FIGHT AGAINST TERRORISM

  • EU external action against terrorism - Council conclusions III

  • Terrorism - Follow-up to the Action Plan IV

EXTERNAL RELATIONS

  • Iraq - Common Position IV

  • Liberia - restrictive measures IV

  • EU priorities for UNGA 57 V

  • Lebanon - Interim trade agreement V

  • Comoros - resumption of development cooperation VI

  • Lithuania and Latvia - agricultural products VI

  • Russia - implementation of the EU Common Strategy VI

  • Ukraine - implementation of the EU Common Strategy VII

  • Mediterranean region - implementation of the EU Common Strategy VII

  • Kyrgyzstan - preparation of the Cooperation Council VII

  • Kazakhstan - preparation of the Cooperation Council VII

  • Preparation of ASEM 4 VII

  • Somalia - Council conclusions VIII

JUSTICE AND HOME AFFAIRS

  • AGIS Programme X

ECOFIN

  • Budget 2003 - Establishment of the draft general budget of the European Communities XI

ENVIRONMENT

  • Convention on the Conservation of Migratory Species of Wild Animals XI

INTERNAL MARKET

  • Data protection - Isle of Man XI

FISHERIES

  • Convention on the conservation and management of Fishery Resources in the South-East Atlantic XI

PARTICIPANTS

The Governments of the Member States and the European Commission were represented as follows:

Belgium :

Mr Louis MICHELDeputy Prime Minister and Minister for Foreign Affairs
Ms Annemie NEYTSState Secretary, attached to the Minister for Foreign Affairs
Denmark :
Mr Per Stig MØLLERMinister for Foreign Affairs
Mr Bertel HAARDER

Minister for Refugees, Immigration and Integration and Minister without Portofolio with responsibility for European Affairs

Mr Friis Arne PETERSENState Secretary for Foreign Affairs
Germany :
Mr Jürgen CHROBOGState Secretary for Foreign Affairs
Greece :
Mr George PAPANDREOUMinister for Foreign Affairs
Mr Anastasios GIANNITSISDeputy Minister for Foreign Affairs
Spain :
Mr Ramón DE MIGUEL Y EGEAState Secretary for European Affairs
France :
Mr Dominique GALOUZEAU de VILLEPINMinister for Foreign Affairs
Ms Noëlle LENOIRMinister attached to the Minister for Foreign Affairs, with responsibility for European Affairs
Ireland :
Mr Dick ROCHEMinister of State at the Department of the Taoiseach and at the Department of Foreign Affairs with responsibility for European Affairs
Italy :
Mr Silvio BERLUSCONIPrime Minister, Acting Minister for Foreign Affairs
Luxembourg :
Ms Lydie POLFERMinister for Foreign Affairs and Foreign Trade
Netherlands :
Mr Bernard R. BOTAmbassador, Permanent Representative
Austria :
Ms Benita FERRERO-WALDNERFederal Minister for Foreign Affairs
Portugal :
Mr António MARTINS da CRUZMinister for Foreign Affairs and Portuguese Communities Abroad
Finland :
Mr Erkki TUOMIOJAMinister for Foreign Affairs
Mr Jari VILÉNMinister of Foreign Trade
Sweden :
Mr Gunnar LUNDAmbassador, Permanent Representative
United Kingdom :
Mr Jack STRAWSecretary of State for Foreign and Commonwealth Affairs
Commission :
Mr Romano PRODIPresident
Mr Günter VERHEUGENMember
Mr Christopher PATTENMember
Mr Poul NIELSONMember
General Secretariat of the Council :
Mr Javier SOLANASecretary-General/High Representative for the CFSP

WORK PROGRAMME FOR THE PRESIDENCY

The Council heard a presentation by the Presidency of its work programme for the second half of 2002. The work programme entitled "One Europe" can be found on the Presidency website under the following address: http://www.eu2002.dk/programme/.

The main priority of the Danish Presidency is to conclude the enlargement negotiations by the end of the year with up to 10 candidate countries and thus to close the cycle "from Copenhagen to Copenhagen". It was under the last Danish Presidency in 1993, that the criteria for accession have been determined. Negotiations have been launched in 1998 for the first six candidate countries and in 2000 for another six countries.

During its Presidency, Denmark also intends to give priority to a series of other issues on the EU agenda, i.e. in the areas of freedom, security and justice, sustainable development and food safety. In the field of external relations, the Danish Presidency intends the EU to live up to its global responsibility for peace and stability, through fighting international terrorism and poverty, through the promotion of democracy and respect for human rights as well as conflict prevention and crisis management.

President Prodi expressed support for the Presidency's programme.

The Council also took note of a presentation by the Greek Minister for Foreign Affairs, Mr Papandreou, on priorities in the area of European security and defence policy, in particular as far as the fulfilment of the Helsinki "headline goal" and the participation of third countries in operations under ESDP are concerned. It is recalled that Greece will preside over discussions having defence implications during the second half of 2002.

ENLARGEMENT

The Council heard a presentation of the programme of the Presidency in the field of enlargement. The programme (doc. 10550/02) is available on the website of the Council: http://register.consilium.europa.eu/. The presentation was followed by an intervention by Commissioner Verheugen, who supported the Presidency's approach, and a brief exchange of views.

The Presidency stated that it will make every effort to meet the targets set by the European Council and to conclude the negotiations before the end of 2002 with up to 10 candidate countries (the 10 countries named by the European Council in Laeken in December 2001), enabling thus the new member states to participate in the next elections for the European Parliament in 2004.

The Presidency aims at solving all outstanding non-budgetary issues by September. In the light of the 2002 regular reports to be presented by the Commission in October, the Danish Presidency would like the Brussels European Council to name the countries that could conclude negotiations at the end of the year and for the Council to take the appropriate decisions that will allow the EU to communicate in early November to the candidate countries all the items lacking in the financial package. The objective is to leave sufficient time for the negotiations with the candidate countries in order to finalise negotiations by the European Council in Copenhagen in December, allowing for the signature of the Accession Treaty in Spring.

The Danish Presidency moreover intends to lend full support to Bulgaria and Romania in their preparations for accession and to intensify their progress towards membership. The intention is to adopt an updated road map and a revised and enhanced pre-accession strategy at the European Council in Copenhagen in December.

Concerning Turkey, the aim is to bring Turkey closer to the European Union, in line with the conclusions of the European Council in Seville.

FOLLOW UP TO THE EUROPEAN COUNCIL IN SEVILLE

The Council was informed by the Presidency on the state of play concerning implementation of the Seville decisions on improving the Council's and the European Council's working methods, as well as ensuring greater openness of Council deliberations. The Council congratulated the Presidency for its rapidity in implementing the Seville European Council decisions.

  • Modification of the Council's Rules of procedure

    In fulfilment of the European Council mandate, the Council adopted a revised version of its Rules of procedure (doc. 10962/02), incorporating new provisions reducing the number of Council configurations, defining the areas of activity of future meetings of the General Affairs and External Relations Council, setting out the latter's role in preparing European Councils and opening up Council deliberations to the public.

  • List of open debates

    The Council also adopted (doc. 11008/02)

      - a list of issues which might be the subject of Council deliberations open to the public on the Commission's most important legislative proposals under the codecision procedure;

      - a list of other issues which might be the subject of a public debate during Council meetings.

  • Kaliningrad

    The Council furthermore took note of an intervention by Commissioner Patten confirming the Commission's intention to come forward by the next General Affairs and External Relations Council (30 September) with the study requested by the European Council in Seville on Kaliningrad, with a view to finding a solution within the acquis in consultation with Poland and Lithuania.

PROGRESS OF WORK IN OTHER COUNCIL CONFIGURATIONS

As part of its role in coordinating the Council's activities and ensuring overall consistency, the Council took note of work under way in other Council configurations on the basis of a Presidency progress report (doc. 11046/1/02).

The Council noted in particular the importance of the following points: the presentation of and first political exchange of views on the mid-term review of the Common Agriculture Policy (15 July Agriculture Council); discussions on the tax package and talks with Switzerland on the taxation of savings, as well as the discussion on EU arrangements for financial regulation, supervision and stability (12 July Ecofin Council); the establishment by the Council of the draft budget for 2003 (19 July Ecofin Council - Budget).

EU's PRIORITIES IN THE AREA OF CONFLICT PREVENTION - Council conclusions

After presentations by SG/HR Solana and Commissioner Patten, the Council adopted the following conclusions :

"Implementing the EU Programme for the Prevention of Violent Conflicts endorsed by the European Council in Göteborg, the Council reviewed ongoing and emerging challenges in the context of its work on conflict prevention. It welcomed steps taken by the Political and Security Committee to further develop its early warning function. The Council identified specific regional and cross-cutting issues, which will require close attention, and tasked the Political and Security Committee to keep these issues under regular review and to develop operational recommendations whenever necessary. To this end, the importance of the recently adopted systematic approach to conflict prevention was recognized. The Council reaffirmed its continued readiness to consider such recommendations whenever necessary."

MIDDLE EAST - Council conclusions

    "1. The Council welcomed the outcome of the Ministerial Quartet meeting in New York on 16 July 2002. The meeting confirmed the Quartet's role as an essential framework for international efforts in support of a comprehensive political settlement of the Middle East crisis. The subsequent discussions of the members of the Quartet with the Ministers of Foreign Affairs of Jordan and Egypt have contributed to ensuring close coordination between the Quartet and key players among the Arab States.

    2. Following the Saudi initiative endorsed by the Arab League, the Seville declaration of 22 June and the statement by US President Bush on 24 June, the Quartet has agreed important elements for progress towards a settlement of the Middle East crisis. The Council stressed in particular the need for parallel progress on political, economic and security issues, the need for immediate improvement in the humanitarian and social situation, the holding of elections and the convening of a further International Ministerial meeting at the appropriate time. The Council also underlined the necessity of drawing up a roadmap towards the goal of achieving, within the stated timeframe of 3 years from now, a final Israeli/ Palestinian settlement, with two States living side by side in peace and security.

    3. The Council endorsed an action plan on Palestinian reforms launched at the London Task Force meeting and confirmed at the Quartet's New York meeting. As the major donor to the Palestinian areas the EU will contribute actively and constructively to the work of the Task Force established under the auspices of the Quartet, supporting the Palestinians in their efforts to work towards comprehensive reforms in all sectors in preparation for statehood. It stands ready to help prepare and monitor free and fair Palestinian elections.

    4. The need for parallel and reciprocal steps on the Israeli side in order to allow Palestinian reforms to succeed was emphasised. The Council endorsed the strong appeal by the Quartet for Israel to lift closures, withdraw their forces to positions held before 28 September 2000, resume transfer of revenues due to the Palestinian Authority and to stop settlement activity. Against the background of a worsening humanitarian situation in the Palestinian territories the Council called for free, immediate access for international humanitarian personnel.

    5. The Council trusts that the steps envisaged by the Quartet will contribute to rebuilding confidence and pave the way for an international peace conference.

    6. The Council condemned in the strongest possible terms the recent terrorist acts against Israeli civilians. The Council noted that the Palestinian Authority condemned such actions and renewed its call on the Palestinian Authority to make all possible efforts in the struggle against terrorism. The Council urged Israel to refrain from unjustified deportations.

    7. The Council welcomed the resumed negotiations between Israel and the Palestinian Authority."

WESTERN BALKANS - Council conclusions

The Council had a discussion on the basis of presentations by SG/HR Solana, ahead of his visit to Belgrade on 25 July, and Commissioner Patten, in the light of his recent visit to the region. It adopted the following conclusions:

"RETURN OF REFUGEES AND INTERNALLY DISPLACED PERSONS (IDPS)

The Council recalled that the right of return was a fundamental human right. It underlined that solutions had been found for the return and integration of 1.5 million refugees, including more than 300.000 minority returns. It noted that more than 1 million persons remained displaced and emphasised that EU assistance for return and reconstruction was still an important part of EU assistance to the Western Balkans. The Council insisted on the need for sustainable solutions to the issue of displaced populations and underlined the importance of strengthening rule of law and socio-economic development. It strongly condemned local obstruction of population return and urged the respective countries to honour their commitment to address outstanding legal and administrative issues. It recalled that the return of refugees and IDPs required close regional co-operation and emphasised that the EU would assess progress made on this issue during the annual review of the Stabilisation and Association Process (SAP). In this context, the Council also welcomed and supported the Agenda for Regional Action II (AREA II) of the Stability Pact launched in Geneva on 27 June 2002.

REGIONAL CO-OPERATION

The Council recalled the importance it attached to regional co-operation as a basis of the SAP in line with the commitments undertaken at the Zagreb Summit. In this respect, the Council strongly welcomed the meeting between the presidents of Bosnia and Herzegovina, Croatia and Yugoslavia in Sarajevo on 15 July. The further development of regional co-operation in full respect of Security Council Resolutions and the sovereignty of States will contribute to closer relations with the EU. In this spirit, the Council welcomed the outcome of the recent Belgrade Ministerial meeting of the SEECP and its focus on priorities and projects aimed at enhancing regional co-operation. The challenge ahead will be to bring together the on-going work of the Stability Pact and other regional initiatives in a mutually reinforcing way.

The Council also recalled the importance of regional co-operation in fighting organised crime and underlined the priority the EU attached to this long-term endeavour.

Former Yugoslav Republic of Macedonia (FYROM)

The Council welcomed the announcement of elections for the FYROM Assembly on 15 September, and confirmed the strong EU support for the OSCE election observation mission. A campaign and poll conducted in a free and fair manner, without violence or intimidation, would contribute positively to the further development of relations with the EU.

The EU urged all parties to work to wind up all irregular or parallel armed elements and to continue to work for reconciliation between the communities.

BOSNIA AND HERZEGOVINA

The Council welcomed further progress by Bosnia and Herzegovina (BiH) on the Road Map, the completion of which may now be within reach. It reiterated that the only way towards justice, prosperity and closer European integration is through further vigorous reforms as set out in the SAP.

The Council reiterated the strong EU commitment to the future of BiH, a potential candidate for membership. The upcoming general elections in October constitute an important opportunity regarding the country's way towards European integration. The Council encouraged the country's electorate to take responsibility for their own future by voting for reform programs aiming at bringing BiH closer to Europe.

The Council recalled that the citizens and peoples of BiH would only move towards Europe in the framework of a unified state.

The EU noted with satisfaction that the mandate of the UN Mission in BiH (UNMiBH) has been prolonged until the end of the year, ensuring an orderly transition between the UN Mission and the EU Police Mission (EUPM), which will take over on 1 January 2003.

FEDERAL REPUBLIC OF YUGOSLAVIA (FRY)

The Council welcomed the constitutive meeting of the Constitutional Commission and was encouraged by progress made in the implementation of the 14 March Serbia-Montenegro Agreement. The Council recalled the importance of the commitment made by the parties to complete the Constitutional Charter by the end of July. The rapid implementation of the 14 March Agreement will allow progress towards European integration. The completion of the Constitutional Charter, which will give the country a clear institutional and economic set up, must be a priority of all parties involved.

The Council also welcomed the first draft Action Plan on internal market and trade and customs as an important step forward, and expected further progress on the completion of the Action Plan. This important progress brought closer the perspective of launching a feasibility study in autumn on the opening of Stabilisation and Association Agreement (SAA) negotiations. The Council underlined the necessity of further rapid progress as well as continued implementation of the political and economic conditions required by the SAP. The Council welcomed the readiness of the European Commission to continue providing assistance in the implementation process of the Serbia-Montenegro Agreement, notably in support of the new institutions.

FEDERAL REPUBLIC OF YUGOSLAVIA / KOSOVO

The Council welcomed the recent understanding between the UN Mission in Kosovo (UNMIK) and FRY in securing Kosovo Serbs participation in the multiethnic judicial system of Kosovo, which should assist in the efforts to dismantle illegal parallel structures in Northern Kosovo. The Council encouraged further progress in the dialogue between UNMIK and the FRY authorities based on the UNMIK/FRY Common document in fulfilment of UN Security Council Resolution 1244.

The Council expressed its strong concern about the situation regarding minority returns in Kosovo and emphasised the urgent need for progress."

FOOD CRISIS IN SOUTHERN AFRICA - Council conclusions

Following a brief discussion on the worsening food crisis and humanitarian situation in Southern Africa, including an intervention by Commissioner Nielson, the Council adopted the following conclusions:

"The Council has observed with growing concern a rapidly developing food crisis and deteriorating humanitarian situation in Southern Africa. The EU has already responded by granting a total of almost 130 million Euro in food and humanitarian aid for the region. Nevertheless, further continuous efforts are needed to alleviate the situation. In view of this, the Council is deeply concerned by certain political decisions and measures taken, which seem to have contributed to a further deterioration of the already alarming humanitarian situation. The Council holds the view that a solution of the humanitarian crisis is one of the highest political priorities and, therefore, encourage the countries in the region to shape their respective policies accordingly.

A long term holistic approach is needed to address the underlying economic, political and social causes of the crisis. Regional efforts to overcome the crisis should be enhanced in line with principles such as good governance, laying down in the "New Partnership for Africa's development" (NePAD) initiative in which Southern African States play a major role. Furthermore, the EU urges the SADC competent ministers to continue their discussions held in Maputo on 5 July 2002 and to take the necessary steps to enhance their own collective regional efforts to overcome the crisis.

The Council calls on the countries in the region to do their utmost to facilitate the ongoing regional humanitarian operations, including the provision of logistical and administrative support, and by insuring unimpeded access and distribution of emergency assistance by humanitarian organisations to all people in need. The EC and its Member States are willing to further contribute to these efforts and will maintain a permanent coordination with SADC countries in order to alleviate a humanitarian situation."

ZIMBABWE - Council conclusions

    "1. The Council reiterated its deep concerns regarding the situation in Zimbabwe, particularly the social and political polarisation, the impasse in the inter-party dialogue between the ZANU-PF and the Movement for Democratic Change, the violations of human rights and the restrictions on the media as well as the deteriorating economic situation caused largely by the policies of the Zimbabwean authorities which impacts negatively on the living conditions of the Zimbabwean people.

    2. Against this background, the Council decided to expand the list of persons affected by targeted sanctions as referred to in the Council Common Position of 18 February 2002 concerning restrictive measures against Zimbabwe to include all remaining Cabinet Ministers, Politburo Secretaries, Deputy Ministers, Assistant Secretaries of the Politburo and the spouse of President Mugabe, Ms. Grace Mugabe.

    3. The Council furthermore reviewed its decision of 18 February 2002 to take "appropriate measures" with reference to Article 96 in the ACP-EC Partnership Agreement. The Council concluded that current conditions in Zimbabwe do not ensure respect for human rights, democratic principles and the rule of law. Therefore the Council decided to continue these measures unchanged. The Council reiterated that contributions to operations of a humanitarian nature and projects in direct support of the population, in particular those in the social sectors, are not affected.

    4. The Council stressed that emergency food aid should under no circumstances be used as a political tool. The Council therefore requests the Commission in consultation with Member States, other donors, NGOs and the UN to draw up concrete guidelines for food distribution in Zimbabwe to ensure a strictly depoliticised distribution.

    5. The Council again stressed the importance of close cooperation and a continued dialogue on all levels with SADC partners and other international partners on the crisis in Zimbabwe. The EU will use all available possibilities to discuss and express its concern about the situation in Zimbabwe. The Council stressed the importance of the upcoming EU-SADC Ministerial Conference in Copenhagen 7 and 8 November 2002 as part of the ongoing dialogue with these countries on the issues affecting Southern Africa. The Council asked the Presidency to continue the preparations of the conference.

    6. Whilst recognising the need to reduce poverty by redressing the historical imbalance in land distribution in Zimbabwe, the Council condemns the ongoing fast track land reform policy as a major cause of the present humanitarian crisis. The Council urges the Zimbabwean Government to implement the process agreed at Abuja in September 2001 and to review its fast track land reform as proposed by UNDP in early 2002. It also urges the Zimbabwean Government to take all appropriate measures to respond to the humanitarian emergency by mobilising its own resources and to ensure that food is distributed impartially to all in need.

    7. The EU will continue to expand its humanitarian assistance to the people of Zimbabwe and to respond to the United Nations consolidated humanitarian appeal. It reiterates that civil society, NGOs and other stakeholders should be included in the implementation and monitoring of the relief effort."

AFGHANISTAN - Council conclusions

    "1. The European Union recognises the outcome of the Emergency Loya Jirga and the establishment of the Transitional Government of Afghanistan as significant achievements. The EU encourages all Afghan parties to continue to work towards a peaceful and inclusive political future in adherence with the Bonn agreement. The European Union appreciates that the Emergency Loya Jirga process, including the regional and district level elections, demonstrated an appetite for involvement in the democratisation process from Afghans across the country.

    The European Union is well aware that daunting challenges remain. Security continues to be a primary concern for both the Afghan people and international organisations working in Afghanistan. In this context, the EU strongly deplores the tragic assassination of the Vice-President of the Afghan Transitional Authority, Haji Abdul Qadir. The EU commends Turkey for taking over the command of ISAF and expresses its full confidence in the Turkish leadership. At the same time, the EU wishes to remind the Afghan parties that their responsibilities according to the Bonn Agreement include the provision of internal security. In this framework four key points have been identified: restructuring of the armed forces, restructuring of the national police, fight against drug smuggling and the reform of the judicial system. In this regard, the EU commends the recent creation of an Afghan National Defence Council.

    Other key challenges are i.a. the need for establishing an effective central government, rule of law, full participation of women in the political process, a transparent and sustainable macroeconomic and financial framework, permanent local participation in the decision-making process, reconstruction of all sectors, demobilisation, and eradication of the drugs trade. The EU is also deeply concerned by actions undertaken by warlords that undermine the implementation of the Bonn Agreement, in particular fighting in the North of the country and the confiscation of customs revenues. The EU welcomes the efforts undertaken so far by the Transitional Government of Afghanistan to address the above-mentioned issues.

    2. The EU will continue to focus its political efforts on: 1) Contributing to the integrity and full implementation of the Bonn agreement, 2) Encouraging positive contributions from regional actors in Afghanistan and from neighbouring countries to the peace process in Afghanistan, and thereby contributing to the consolidation of the Afghan state, 3) Supporting the pivotal role played by the UN, notably the Special Representative of the Secretary General.

    In the post-Loya Jirga phase, the EU will seek to facilitate the implementation of the Bonn Agreement through a substantive dialogue with the Afghan parties. The EU will pay close attention to the establishment of the Constitutional Commission foreseen in the Agreement and will focus its efforts on the substance of the work done in this and the other commissions established under the Agreement in order to assist the creation of an Afghan state that respects the rule of law and human rights, including the rights of women. The EU will also provide input to institution building, including national security and judicial institutions, and counter-narcotics activities. The EU will enter into dialogue on the need for an overall framework plan for security matters including a governmental contact point for such matters.

    In the dialogue with the Transitional Government, the EU will draw on the key principles agreed between the Afghan parties and the international community, which are set out in the Bonn Agreement, the Tokyo document and Security Council Resolution 1419. These include the intention to establish a broad-based, gender-sensitive, multi-ethnic and fully representative government.

    As a sign of the EU's sustained commitment, the Union has recently appointed Mr. Francesc VENDRELL as the EU special representative for Afghanistan.

    3. The EU is committed to delivering a substantial contribution to the reconstruction of Afghanistan. The international engagement in Afghanistan will ultimately depend on the Afghan parties working towards fully achieving the key objectives agreed among themselves and between them and the international community. The Bonn agreement remains the yardstick, and successful conduct of the general elections scheduled for mid 2004 is the medium term objective.

    The EU will encourage a process - undertaken by the Transitional Government of Afghanistan in partnership with the international community - leading to the development of verifiable benchmarks and monitoring systems on how to achieve these goals.

    4. The EU will continue to remind international donors of the urgent need to deliver the development assistance pledged in Tokyo. Very large sums have already been disbursed, but the needs may be larger this year than expected in Tokyo. The EU will encourage the allocation of development aid in a way that will strengthen the role of the central government at the expense of those outside or opposing the Bonn process, while at the same time ensuring that a visible peace dividend soon reaches the population as a whole.

    The EU will encourage the improvement of mass communication via multiple media in Afghanistan in order to further the democratic processes and make the Transitional Government more transparent to the Afghan people, not least its dealings with the international community.

    The National Development Budget will soon be presented by the Afghan administration, and the EU strongly encourages all donors to provide assistance within this framework. The EU notes the serious lack of funds for recurrent costs this year and urges donors to consider ways of filling the gap, including delivery in a timely manner on pledges made in Tokyo. The Afghanistan Reconstruction Trust Fund is considered the preferred multilateral instrument for budget support, including recurrent expenditures, and reconstruction activities of the Transitional Government.

    The EU welcomes the Afghan proposal to move to a Consultative Group process for aid co-ordination at the end of the year under the leadership of the Transitional Government of Afghanistan. The EU believes that the CG process should encompass the whole aid spectrum and take up all issues of relevance for the development of Afghanistan.

    5. The European Union welcomes the news that a large number of Afghan refugees have returned. At the same time it is of concern that the returnees are not receiving the international support they need to ensure their sustainable re-integration. It is crucial to ensure that international assistance reaches all the people of Afghanistan. The Afghan parties also have to take their share of the responsibility to ensure that humanitarian support can be safely and effectively delivered."

INDIA/PAKISTAN

SG/HR Solana also referred to his forthcoming trip to Afghanistan and to other countries in the region (India, Pakistan, Iran) at the end of July. Minister Straw briefed colleagues on his recent trip to India and Pakistan.

Ministers briefly discussed the situation in India and Pakistan and underlined the importance that the elections in Pakistan and in Jammu and Kashmir later this year be free and fair. They invited SG/HR Solana to make this clear to his interlocutors during his forthcoming visit to the region. Ministers noted that the Indian Chief Election Commissioner had encouraged diplomats in New Dehli to observe the elections in Jammu and Kashmir. It was agreed that EU Member States and the Commission would coordinate their activities in this respect through their respective Missions in New Dehli.

PREPARATION OF THE WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT - Council conclusions

The Council was briefed by the Presidency on preparations for the World Summit on Sustainable Development which will take place in Johannesburg from 26 August to 4 September 2002, including the meeting of the "Friends of the Chair" on 17 July in New York. It also heard a presentation by Commissioner Nielson.

The Council went on to adopt conclusions on the key messages for an EU Communication strategy for Johannesburg and on the EU initiatives derived from the conclusions of the Seville European Council.

"THE COUNCIL:

RECALLING the conclusions of the Environment Council of 4 March 2002, the Development Council of 30 May 2002, the ECOFIN Council of 4 June 2002, the General Affairs Council of 17 June 2002 and the Seville European Council on 21-22 June 2002;

STRESSING the commitment of the EU to work towards a comprehensive outcome for the World Summit on Sustainable Development, including : the need for a focused and action-oriented plan of implementation with targets and timeframes, a political declaration framing the renewed commitment by world leaders to achieving sustainable development and complementary voluntary partnership activities;

RECALLING that the six main challenges to be addressed in relation to the global dimension of sustainable development are:

1) Poverty eradication and promoting social development as well as health,

2) Making globalisation work for sustainable development,

3) Sustainable patterns of production and consumption,

4) Conservation and sustainable management of natural and environmental resources,

    5) Strengthening governance for sustainable development at all levels, in particular international environmental governance, including public participation,

6) Means of implementation, including capacity building and technology co-operation;

UNDERLINES that the World Summit on Sustainable Development offers a unique opportunity to achieve ambitious agreements, including on clear targets, timetables as well as on specific work programmes, building on Agenda 21, on the internationally agreed development goals and targets, in particular those contained in the Millennium Declaration and on major UN Conferences and international agreements since 1992, for the implementation of Agenda 21 and of the Rio Declaration and Principles, in order to live up to the efforts by the international community to achieve a global deal for sustainable development;

AGREES that the communication strategy of the EU should cover:

    a) specific EU initiatives being prepared in the spirit of partnership and responsibility for the World Summit and beyond in the areas of drinking water and sanitation and energy, as well as activities in fields such as trade and development, health and sustainable consumption and production,

    b) the objectives of the EU internal and external sustainable development strategy, including de-coupling economic growth from environmental degradation, the Lisbon process, the Cardiff process on environmental integration, trade and development co-operation, including through association agreements with third countries such as the Cotonou Agreement and the Euro-Mediterranean Partnership,

    c) the positive measures or priorities put forward by the EU to support action building on the Doha Development Agenda and the Monterrey Consensus, as well as to implement the Johannesburg Plan of Implementation in areas such as health, food security, water, energy, globalisation, trade and finance including facilitating developing country exports, global public goods, sustainable patterns of consumption and production, and governance for sustainable development;

STRESSES that the EU is investing considerable resources in these areas of international development co-operation(2) 1. In responding to the priorities of partner countries and recalling its commitments made in Monterrey, the EU is ready to increase and deliver these resources over the following years within the context of countries' efforts to reduce poverty in the framework of sustainable development;

CONFIRMS its strong support for developing a "Water for Life" initiative which, in partnership with countries and regions, should bring together public and private funds, stakeholders and experts to provide long term, sustainable solutions to problems of water management and will help deliver the target of halving the proportion of people who are unable to reach or afford safe drinking water as well as the Bonn target of halving the proportion of people lacking access to improved sanitation by 2015;

NOTES the Commission's communication on energy and development and CONFIRMS its strong support for developing an "Energy for Poverty Eradication and Sustainable Development" initiative as a platform for developing partnerships with interested developing countries also involving civil society, including the private sector, to contribute to a global action programme aimed at providing the access to energy services sufficient to facilitate the achievement of the Millennium Development Goals by building capacity and, inter alia, improving energy efficiency, increasing the share of renewable energy sources and enhancing the use of cleaner, more efficient fossil fuel technologies. This should also help deliver the proposed target of increasing the global share of renewable energy sources to at least 15 % of primary energy supply by 2010;

CONFIRMS the EU Resolution on Health and Poverty Reduction in Developing Countries, on which basis the EU will pursue the Millennium Development Goals related to health. The EU invites partner countries and other stakeholders to join its efforts to improve the situation in the field of health, including the fight against HIV/AIDS and other communicable diseases, with a clear focus on the poorest, on women and children, including reproductive health services and rights in accordance with the declarations of Cairo and Beijing;

WELCOMES the intention of the Commission to present a communication on assisting developing countries develop their potential to benefit from freer trade and contribute to sustainable development. This will lay out the way the EC intends to contribute to help developing countries take advantage of opportunities for trade and investment, as an element of their national development policies;

INVITES all countries and stakeholders to build up partnerships contributing to the goals of reversing the loss of environmental resources by 2015, with particular emphasis on fresh water, energy, oceans, land and soil, and forests and of significantly reducing the loss of biodiversity by 2010;

DECIDES that the EU will make use of the programmes and structures of the Community as well as of the Member States, in consistency with EU development policies, work with financial institutions and civil society, including the private sector, and seek co-operation with other interested partners;

RECALLS that Member States and the Commission are also preparing and/or participating in partnerships in different areas supportive to sustainable development and ENCOURAGES the development of further partnerships supportive of the Plan of Implementation, including i n the priority areas of water, energy, health, agriculture and biodiversity (WEHAB) and of sustainable production and consumption patterns;

STRESSES that, in implementing these initiatives, the European Union will pay particular attention to Africa, working closely with its partners to lend impetus to the NEPAD initiative;

DECIDES to continue efforts after Johannesburg to ensure the follow-up of the results of the World Summit on Sustainable Development at global, European and regional level."

EUROPEAN SECURITY AND DEFENCE POLICY

Over lunch, on the basis of presentations by SG/HR Solana and Minister Papandreou, Ministers discussed the state of play in the field of the European Security and Defence Policy (ESDP), including the question of the implementation of the Nice provisions on participation of non-EU European allies.

PEREJIL ISLET

Over lunch, Ministers were briefed by the Spanish State Secretary on recent developments regarding the Perejil Islet.

ITEMS APPROVED WITHOUT DEBATE

The documents whose references are given are available on the Council's Internet site http://consilium.europa.eu. Acts adopted with statements for the Council minutes which may be released to the public are indicated by an asterisk; these statements may be obtained from the Press Office or by following the procedure indicated on the Internet site.

TRADE POLICY

Steel - Council conclusions

"The Council

    Recalls the EU determination to seek a prompt ruling on the illegality of the US steel safeguards through WTO dispute settlement procedure, which, as provided in Council Regulation 1031/2002 of 13 June, will automatically trigger the application of a list of re-balancing measures for a total value of USD 2242 Millions if the US measures are not immediately terminated after their expected condemnation by the WTO.

    Shares the views expressed by the Commission in its report presented on 17 July that the negative impact of the US Government protectionist measures on steel has hit in particular the US economy itself.

    Conveys its concern that the combination of a potential collapse in prices in 2003, especially when the current US measures will have to be lifted and the continued lack of restructuring of the US steel industry, can be expected to result in a further crisis once the US measures are withdrawn.

    Therefore expresses EU's intention to promote a broad international initiative to tackle the difficulties faced by the world steel industry.

    Recalls that WTO rules require Members applying safeguard measures to compensate exporting Members for the adverse trade effect of such measures and stresses the importance of compensation so as to avoid systemic abuse of safeguard actions.

    Notes with interest the recent decisions by the US Government to exclude from the safeguard measures products which are either purchased in small quantity, at low quality or high cost from domestic steel makers.

    Expects that the extension of the internal US deadline to consider pending exclusion requests until 31 August will allow the US to grant further economically meaningful product exclusions, which will also be in the interest of US users, and therefore calls upon the United States to intensify its internal review of such product exclusions. The Council also calls upon the Commission to continue its efforts to persuade the US to grant further exclusions for those European companies which have submitted justified requests, and to continue in general its efforts to obtain economically meaningful product exclusions and compensation from the US.

    Invites the Commission to submit an additional report as well as a proposal regarding the definitive content and application of Annex I to Regulation 1031/2002, and will decide on this proposal taking account of the decisions on product exclusions and compensation to be made by the US. The Council intends to revert to this issue by the end of September."

Antidumping duty on bicycles from Taiwan

The Council adopted a Regulation amending Regulation (EC) No 397/1999 imposing a definitive anti-dumping duty on imports of bicycles originating in Taiwan in order to include one company (Oyama Industrial Co., Ltd.) to the list of exporting producers from Taiwan listed in the annex to that Regulation subject to a weighted average duty rate of 5.4% (doc. 10332/02).

Countervailing duty on sulphanilic acid from India

The Council adopted a Regulation imposing a definitive countervailing duty and collecting definitively the provisional countervailing duty imposed on imports of sulphanilic acid originating in India (doc. 10579/02). The rate of the definitive countervailing duty applicable to the net, free-at-Community frontier price, before duty is fixed at 7.1%.

Anti-dumping duty on sulphanic acid from China and India

The Council adopted a Regulation imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of sulphanilic acid originating in the People's Republic of China and India (doc. 10582/02). The definitive duty rates are 21% for products from China and 18.3% for products from India.

Commodities: International Rubber Study Group - participation of the Community

The Council adopted a Decision by which the Community joins the International Rubber Study Group (doc. 10887/02 + COR1).

The International Rubber Study Group (IRSG) is an Intergovernmental Organisation, founded in 1944, which provides a forum for the discussion of problems affecting the production and consumption of, and trade in, natural and synthetic rubbers and to collect and disseminate statistical information on the world rubber industry.

Export credits for ships *

The Council adopted an amendment to Decision 2001/76/EC in respect of export credits for ships (doc. 9227/02 and 9556/02). The modification is a consequence of the amendments made within the OECD to the OECD's Arrangement on guidelines for officially supported export credits, which was incorporated into Community law by a Council Decision of 4 April 1978 and which since has been amended on several occasions.

FIGHT AGAINST TERRORISM

EU external action against terrorism - Council conclusions

"Further to the Sevilla Declaration, and in line with the European Union's Plan of Action of 21 September, the Council reiterates its commitment in the field of the fight against terrorism in all aspects of the EU's external policy, including CFSP. In this context, and consistent with the obligations established by UN Security Council Resolution 1373, the Council has agreed the following measures to take work a further step forward:

    - reviewing and amending counter terrorism aspects of relations with third countries, including as appropriate contractual relations, following the systematic evaluation initiated by the GAC in October 2001;

    - focusing political dialogue more sharply on particular countries, regions and multilateral frameworks, and on specific issues related to counter terrorism, and ensuring follow up;

    - identifying specific actions to assist third countries in implementing their commitments under UNCSR 1373, and identifying a small number of countries to focus on, in consultation with the UN Counter terrorism Committee, for the purpose of launching a pilot project. The Council takes note of the ongoing Community assistance and invites the Commission to consider further action through the relevant programmes (MEDA, TACIS, CARDS, ALA, etc), also on the basis of work done by other competent bodies;

    - increasing the effectiveness of existing instruments implementing UNSCR 1373 including by exchanging best practice;

    - implementing and developing the targeted initiatives within the field of non-proliferation, disarmament and arms control adopted by the GAC on 15 April 2002;

    - strengthening arrangements for sharing intelligence and developing the production of situation assessments and early warning reports, drawing on the widest range of sources;

    - developing a common evaluation of terrorist threat against the Member States or the forces deployed under ESDP outside the Union in crisis management operations, including the threat posed by terrorist use of weapons of mass destruction;

    - giving guidance to the appropriate bodies to ensure that the development of ESDP takes fuller account of the capabilities that may be required to combat terrorism, whether for the protection of forces deployed in EU crisis management operations in the scope of the Petersberg tasks as outlined in the Treaty, or as regards the protection of civilian populations against the effects of terrorist attacks. The military and civilian capabilities required for these tasks and the modalities of their co-ordination remain to be determined;

    - enhancing co-operation with and within relevant international organisations, as well as with the United States and other partners;

    - devoting greater efforts to conflict prevention.

To this end, the Council invites COREPER and the PSC to work on this basis and to examine the proper ways to enhance efficiency and coherence of all of the EU's action against terrorism. The Council will consider adoption of appropriate measures.

The Council will be kept informed on progress with a view to presenting a status report to the European Council in Copenhagen."

Terrorism - Follow-up to the Action Plan

The Council took stock of the update for July of the "road map" of all the measures and initiatives implemented under the action plan decided on following the events of 11 September 2001 (doc. 10773/2/02 REV2). These efforts are focused in particular on action in the area of CFSP and external relations, including strengthening relations with certain countries, support for a political and reconstruction process in Afghanistan and the implementation of UNSCR 1373, as well as legislative measures in the field of Justice and Home Affairs, such as the framework decisions taken concerning a European arrest warrant and the definition of terrorist offences, and operational measures such as increased mutual assistance between police and justice authorities in Member States and enhanced cooperation with the US.

EXTERNAL RELATIONS

Iraq - Common Position

The Council adopted a Common Position supplementing Common Position 96/741/CFSP concerning the derogations from the embargo with regard to Iraq (doc. 11005/02).

On 14 May 2002, the UN Security Council adopted Resolution 1409 which provides for a new regime for derogations from the embargo with regard to Iraq, based on a Goods Review List and simplified procedures for its application. The Common Position provides that within the framework of the embargo established with regard to Iraq, in particular in Security Council Resolutions 661 (1990) and 687 (1991), the derogations from the embargo established by Resolution 986 (1995) and implemented in accordance with the Memorandum of Understanding of 20 May 1996 between Iraq and the UN Secretary-General shall be allowed under the conditions set out in Resolution 1409.

Liberia - restrictive measures

The Council adopted a Regulation concerning certain restrictive measures in respect of Liberia (doc. 9811/1/02 REV1). The Regulation concerns the prohibition of:

  • technical training or assistance related to the provision, manufacture or use of arms and related material of all types;

  • the direct or indirect import of all rough diamonds from Liberia, whether originating there or not.

The adoption of this Regulation is required following the adoption on 13 June 2002 of Common Position 2002/457/CFSP (OJ L 155, 14.6.2002, p.62), which amended and extended Common Position 2001/357/CFSP (OJ L 126, 8.5. 2001, p.1) of 7 May 2001, due to the existence of Community competence in the field concerned.

The Common Positions were adopted following the adoption of UN Security Council Resolutions 1343 and 1408 which respectively imposed and extended restrictive measures on the Government of Liberia for its support to armed rebel groups in the region.

EU priorities for UNGA 57

The Council approved the EU priorities paper for the 57th session of the UN General-Assembly. The main priorities include the following:

  • The role of the UN and the implementation of the Millennium Declaration;

  • Combating terrorism and the central role of the UN in this combat, cf. UN Security Council Resolution 1373;

  • The promotion and protection of human rights and fundamental freedoms as essential elements of the EU's Common Foreign and Security Policy;

  • International law and criminal justice, in the wake of the landmark entry into force of the Rome Statute on the International Criminal Court;

  • Humanitarian issues, a key concern for the EU, the largest global donor in humanitarian aid;

  • Conflict prevention, one of the main objectives of the EU's external relations, and peacekeeping, as the EU is developing its own crisis management capacity;

  • International Peace and Security, including the situations in Africa, the Middle East, the Balkans, the Mediterranean region, India and Pakistan, Afghanistan and East Timor;

  • Disarmament and non-proliferation of weapons of mass destruction and their means of delivery;

  • Sustainable development, in particular the World Summit on Sustainable Development (Johannesburg) as an opportunity to redirect globalisation towards sustainable development and poverty reduction;

  • The eradication of infectious diseases and pandemics, in particular the fight against HIV/AIDS;

  • Strengthening the UN system including by improving UN finances.

Each year, the EU prepares a paper setting out its priorities for the next session of the UNGA.

Lebanon - Interim trade agreement

Pending the entry into force of the Euro-Mediterranean Agreement establishing an association between the European Community and Lebanon signed on 17 June 2002, the Council approved a Decision on the conclusion of an Interim Agreement on trade and trade-related matters with Lebanon (doc. 10253/02). The Interim Agreement will replace relevant parts of the Cooperation Agreement currently in force, which was signed on 3 May 1997.

Comoros - resumption of development cooperation

The Council agreed for the EU to announce its willingness to resume development cooperation with the Comoros in a letter to be sent to the authorities of the Union of the Comoros (doc. 10933/02), following the recent elections, the referendum on the constitution in December 2001 and the signing of the Framework Agreement on National Reconciliation in February 2002. The EU also expresses its readiness to assist the Comoros on its road to development and reconciliation.

Lithuania and Latvia - agricultural products

The Council adopted, by qualified majority, with the abstention of the Austrian delegation, a Regulation establishing concessions in the form of Community tariff quotas for certain agricultural products and providing for an adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreement with Lithuania and Latvia (doc. 9964/02 + COR 1 and 9965/02 + COR 1 respectively).

The Europe Agreements with the 10 countries of Central and Eastern Europe (CCEEs) provide for the progressive liberalisation of trade in agricultural products with a view to these countries' future accession to the Community. An initial round of negotiations took place in 1999, the outcome of which was applied between July 2000 and 2001 as autonomous and transitional measures.

A second round of negotiations, with the aim of extending the scope of trade liberalisation still further by the simultaneous abolition of customs duties and export refunds, was begun in early 2002. The outcome of these negotiations with Lithuania and Latvia will need to be inserted as Additional Protocols to the Europe Agreements. In view of the procedural timetable for the entry into force of such a Protocol, the Commission suggested that the Council should apply the concessions agreed on an autonomous and transitional basis by means of a Regulation. This Regulation, adopted today, will take effect on 1 July 2002. It will be replaced by the new Protocol when this comes into force.

Russia - implementation of the EU Common Strategy

The Council took note of the Presidency's work plan regarding the implementation of the Common Strategy of the European Union on Russia for the second semester of 2002.

The main priorities are as follows:

  • Promoting the consolidation of democracy, the rule of law and public institutions in Russia;

  • Integration of Russia into a common European economic and social area;

  • Cooperation to strengthen stability and security in Europe and beyond;

  • Addressing common challenges on the European continent.

Ukraine - implementation of the EU Common Strategy

The Council took note of the Presidency's work plan regarding the implementation of the Common Strategy of the European Union on Ukraine for the second semester of 2002.

The priorities are as follows:

  • consolidating democracy, the rule of law and public institutions in Ukraine;

  • supporting the economic transition process including support for Ukraine's integration into European and world economy and regional cross-border cooperation with neighbouring countries;

  • cooperation to strengthen stability and security in Europe and beyond;

  • strengthening cooperation in the field of environment, energy and nuclear safety;

  • supporting strengthened cooperation in the context of the EU enlargement;

  • deepening cooperation in the field of justice and home affairs.

Mediterranean region - implementation of the EU Common Strategy

The Council took note of the Presidency's priorities for implementing the EU's Common Strategy on the Mediterranean region for the second semester of 2002, which cover:

  • the political and security chapter (strengthening the political and security related dialogue at all levels);

  • the economic and financial partnership (building an area of shared prosperity through the achievement of free trade, economic transition and investment to the region);

  • the social, cultural and human partnership (promoting understanding between cultures and exchanges between civil societies).

Kyrgyzstan - preparation of the Cooperation Council

The Council established the position of the European Union for the 4th Cooperation Council with Kyrgyzstan on 23 July 2002 (see also doc.11251/02 Presse 218).

Kazakhstan - preparation of the Cooperation Council

The Council established the position of the European Union for the 4th Cooperation Council with Kazakhstan on 23 July 2002 (see also doc.11252/02 Presse 219).

Preparation of ASEM 4

The Council took note of an Information Note on the state of preparation of the ASEM 4 Summit to be held in Copenhagen on 23-24 September 2002.

Somalia - Council conclusions

"I.  EU OBJECTIVES

The objectives of the European Union with regard to somalia are the restoration of peace and stability in all parts of the country; the respect for the sovereignty, territorial integrity, political independence and unity of the country, and the right of the Somali people to determine their own future consistent with the purposes and principles of the charter of the United Nations; the establishment of legitimate and effective governance structures; and the promotion of friendly and co-operative relations with other countries within the horn of Africa region.

The EU considers that the promotion and protection of human rights, the restoration of the rule of law, democracy and good governance in somalia on a sustainable basis, is the only effective way to provide social and economic recovery and to eradicate the threat of terrorism.

II. THE IGAD PEACE AND RECONCILIATION INITIATIVE O N SOMALIA

In pursuance of these objectives, the EU affirms its continuing support to the IGAD resolutions of 24 November 2000 and 11 January 2002 which provide a general framework for the Somali reconciliation process. Moreover, the EU encourages and supports the efforts of all parties in Somalia as well as of the IGAD Member States aiming at:

    - promoting reconciliation among all Somali parties without preliminary conditions for dialogue and negotiation;

    - achieving a durable cessation of hostilities in areas where fighting has recurrently occurred during the past years, and safeguarding and consolidating peace and stability in those areas where it has been achieved;

    - a progressive internalisation of the process leading to the establishment of new structures based on the sharing and devolution of power through the democratic process;

- supporting a complementary process of inter- and intra-clan reconciliation;

    - an early establishment of effective administration throughout Somalia including an all-inclusive, broad-based administration and, in parallel, the consolidation of provisional regional administrations representing components of Somali society;

    - promoting friendly relations between Somalia and its neighbours and other countries in the region, such positive relationships being beneficial to the security of each state;

    - providing efforts and assistance to improve the humanitarian situation and enabling conditions to promote and support economic social and human development and the return of refugees.

III. EU SUPPORT FOR THE RECONCILIATION PROCESS

To support the IGAD peace and reconciliation initiative, the EU will use the following instruments:

    1. In order to adapt rapidly to political developments in the reconciliation process, the EU will continue to use declarations and troika demarches to pass rapid and clear messages to the different Somali and regional stakeholders. If progress so merits, it may be appropriate in the future that consideration be given to the appointment of an EU special envoy as the most efficient way to act in the field.

    2. EU political initiatives could, if deemed appropriate, be supported by adequate concrete measures including, inter alia, smart sanctions targeting individuals blocking the reconciliation process and positive incentives including targeted financial support.

    3. A renewed co-ordinated approach between the Somali reconciliation process and the international co-operation efforts in Somalia will be promoted:

      a) The ongoing "peace dividend approach" which intends to support areas in which basic standards of governance and security are assured will continue to be implemented in the different regions of Somalia as a general framework for the EU's co-operation strategies.

      In this context, the EU considers that particular attention must be given to social sectors and especially to education. Moreover, the equitable participation of both men and women in the reconstruction and development of Somalia is to be given greater importance in co-operation priorities.

      The EU recognises, however, that massive needs as well as the lack of administrative structures and sustainable policies require the continuation of a multi-sectoral aid delivery capacity. This flexibility will ensure rapid adjustment to unpredictable developments in the social and political situation and will contribute to better adjusting aid to absorption capacities.

      b) As peace advances the "peace dividend approach" could be complemented by a more active "peace building approach" focussing on the early establishment of effective administration including a all-inclusive, broad-based administration and, in parallel, the consolidation of provisional regional administration representing components of Somali society:

      (i)  promoting emerging all-inclusive, broad-based governance:

      The EU will provide financial and technical support to a provisional, all-inclusive, broad-based administration to succeed rapidly to the transitional government of Arta.

      The support to a provisional broad-based administration would have to take into consideration a certain number of conditions, inter alia:

        - the functioning of the main Somali infrastructures including the port and airport in Mogadishu as well as free circulation of persons and goods;

        - the launching of an effective and functioning organic partnership with th e regions and the scheduling of a participative and democratic organisation;

        - the adoption of good governance, effective fighting against terrorist structures and the establishment of harmonious relationships with neighbouring countries;

        - concrete measures to promote and protect human rights including legislative measures;

        - the launching of effective reconciliation programmes aiming to complete regional reconciliation initiatives including matters relating to the spoliation of property.

      (ii)  promoting emerging regional governance:

      In order to encourage a bottom-up approach, the EU will provide financial

      and technical support to regional authorities that demonstrate, inter alia:

      - a commitment to peace and to restoring credible governance and democracy;

        - an effective collaboration with the international community in the fight against terrorism;

        - an effective control of the main population centres and economic infrastructures;-progress in disarming/demobilising factions;

        - the launching of effective reconciliation programmes including clanic and political special conferences;

        - conditions for the return and reintegration of Somali refugees should be encouraged in close co-operation with UNHCR and other relevant UN and international organisations and NGOs;

        - willingness to participate in functional co-operation programmes that will lead to collaboration with other regional entities;

        - at a pace that respects the specific developments of the different regions of Somalia since 1991, participation in an open agenda dialogue with a provisional broad-based administration and other regional administrations with the genuine aim of re-establishing definitive institutions in Somalia.

      4. The EU will support the IPF initiative on Somalia and the SACB (Somalia Aid Co-ordination Body), as the two co-ordination pillars (political and co-operation) of the international community monitoring progress in the Somali political process. They will contribute to the EU response to political and co-operation challenges requiring co-ordination with other important international actors.

    Support should be given to the Somalia contact group in Nairobi and New York, established by the UN.

    These structures will also facilitate the progressive acceptance by the Somali stakeholders of the UN and/or regional organisations in the Somali reconciliation process. In this context, the EU will also consider making a financial contribution to peace force interventions under the aegis of the UN and/or the regional organisations if necessary.

IV. FINAL REMARKS

Given the weight of the regional context, the EU will call upon the front Line states (Ethiopia, Kenya and Djibouti) and upon all countries having an influence in the different Somali parties and factions including the transitional government, to deploy all their efforts in order to allow progress in the IGAD negotiations.

The EU will also reiterate its call upon all countries to refrain from any activity that could exacerbate the internal conflicts and, in particular, to strictly abide by the UN arms embargo on Somalia.

The EU supports the current efforts by the UN to reinvigorate the arms embargo and would welcome any future recommendations by the UN on enforcement of the embargo.

The EU will also express its support for a progressive involvement of the UN and/or regional and sub-regional organisations in order to ensure stability and consolidate the reconciliation process."

JUSTICE AND HOME AFFAIRS

AGIS Programme

The Council adopted a Decision establishing a framework programme for police and judicial cooperation in criminal matters (AGIS) (doc. 10814/02).

The AGIS Programme is established for the period from 1 January 2003 to 31 December 2007, with a total amount for the whole period of EUR 65 million.

The programme will support projects in the following areas:

    a) judicial cooperation in general and criminal matters, including training;

    b) cooperation between law enforcement authorities;

    c) cooperation between law enforcement authorities or other public or private organisations in the Member States involved in preventing and fighting crime, organised or otherwise; and

    d) cooperation between Member States to achieve effective protection of the interests of victims in criminal proceedings.

ECOFIN

Budget 2003 - Establishment of the draft general budget of the European Communities

The Council confirmed the outcome of the proceedings of its meeting of 19 July 2002 and drew up the draft budget for 2003 accordingly (doc. 11211/02 and doc. 10852/02 Presse 206).

The Council also mandated the Presidency, assisted by the General Secretariat of the Council, to draw up the budget documents and forward them to the European Parliament.

ENVIRONMENT

Convention on the Conservation of Migratory Species of Wild Animals

The Council adopted a Decision concerning participation by the Community in the Seventh meeting of the Parties to the Bonn Convention on the Conservation of Migratory Species of Wild Animal which will take place on 18-24 September 2002 in Bonn.

INTERNAL MARKET

Data protection - Isle of Man

The Council adopted a decision authorising the Commission to negotiate on behalf of the Community an extension to persons from the Isle of Man of the legal protection provided for under Article 7 of Directive 96/9/EC on the legal protection of databases.

FISHERIES

Convention on the conservation and management of Fishery Resources in the South-East Atlantic

The Council adopted a Decision on the conclusion of the Convention on the conservation and management of Fishery Resources in the south-east Atlantic Ocean (doc. 15080/01 +COR 1). This Decision enables the European Community to become a full member of the regional fisheries organisation to be set up under this Convention, as Community fishermen operate in the Convention area. The objective of the Convention is to ensure the long-term conservation and sustainable use of the fishery resources in the Convention Area through the effective implementation of this Convention.

________________________

(1) Where declarations, conclusions or resolutions have been formally adopted by the Council, this is indicated in the heading for the item concerned and the text is placed between quotation marks. The documents whose references are given in the text are available on the Council's Internet site HYPERLINK http://consilium.europa.eu http://consilium.europa.eu .

(2)1EUs annual budget on water related development amounts to 1.5 billion Euro. The 2003 budget on energy amounts to 700 million Euro. The present portfolio to promote health outcomes exceeds 1.4 billion Euro. In 2002, the EU has set aside up to 120 million Euro to combat the spread of communicable diseases.


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