Brussels, 25

Brussels, 25.10.2007

COM(2007) 643 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE

EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

Towards an EU response to situations of fragility

- engaging in difficult environments for sustainable development, stability and peace -

{SEC(2007) 1417}

EN EN

TABLE OF CONTENTS

1. List of Acronyms.......................................................................................................... 3

2. Introduction.................................................................................................................. 4

3. Background .................................................................................................................. 4

4. Towards an EU response to situations of fragility....................................................... 5

4.1. Identifying fragility: triggers and features ................................................................... 5

4.2. Engagement in situations of fragility: challenges ........................................................ 5

4.3. Preventing fragility: dialogue and analysis to identify and tackle triggers of fragility 6

4.4. Addressing

fragility:

strategies and priorities .............................................................. 7

4.5. Post-crisis: Linking Relief, Rehabilitation and Development (LRRD) ....................... 8

4.6. Security and fragility.................................................................................................... 8

4.7. Democratic governance and human rights in situations of fragility ............................ 8

5. Improving

instruments ............................................................................................... 10

5.1. Financial instruments and procedures........................................................................ 10

5.1.1. European Development Fund (EDF) ......................................................................... 10

5.1.2. Development Cooperation Instrument (DCI) and European Neighbourhood and

Partnership Instrument (ENPI)................................................................................... 10

5.1.3. Instrument for Stability .............................................................................................. 11

5.1.4. Humanitarian

aid........................................................................................................ 11

5.1.5. European Instrument for Democracy and Human Rights (EIDHR) and Thematic

Programme "Non State Actors and Local Authorities in Development"................... 11

5.2. Budget

support ........................................................................................................... 11

6. The way forward: priorities and deliverables............................................................. 12

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1. LIST OF ACRONYMS

ACP: Africa, Caribbean and the Pacific

AfDB: African Development Bank

CFCSP: Common Framework for Country Strategy Papers

CFSP: Common Foreign and Security Policy

CSP: Country Strategy Paper

DCI: Development Cooperation Instrument

DDR: Disarmament, Demobilisation, Reintegration

ENP: European Neighbourhood Policy

ENPI: European Neighbourhood and Partnership Instrument

EDF: European Development Fund

ESDP: European Security and Defence Policy

IMF: International Monetary Fund

LRRD: Linking Relief, Rehabilitation and Development

NIP: National Indicative Programme

OECD/DAC: Organisation for Economic Co-operation and Development / Development

Assistance Committee

SSR: Security Sector Reform

UN: United Nations

WB: World Bank

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2. INTRODUCTION

Fragile situations constitute a particular challenge as an obstacle to sustainable development,

equitable growth and peace, creating regional instability, security risks at global level,

uncontrolled migration flows, etc. The EU must be able to put the large variety of

instruments, both at Member States and Community level, at work within an agreed and

coordinated response strategy covering such situations. This Communication aims to provide

the basis for such an EU response strategy to be developed together with the Council and EU

Member States.

The existing EU policy framework and instruments, the ongoing international debate and EU

comparative advantages and experience form the basis of this Communication. A technical

Annex draws conclusions from engagement in situations of fragility. In addition, the

Commission Services and the Council Secretariat have developed a Joint paper to launch a

debate on "Security and Development" where issues of relevance to this Communication are

more specifically addressed.

This Communication integrates the outcome of an open debate with key civil society

organisations and an informal meeting of EU Ministers of Development in September 2007. It

is being forwarded to the other EU institutions with a view to launching a discussion aimed at

consolidating a comprehensive EU strategy for addressing fragility and therefore contributing

to creating conditions for sustainable development, stability, peace and democratic

governance.

3. BACKGROUND

The international community is increasingly concerned about the consequences of fragility,

which exacerbate the challenge of reaching the Millennium Development Goals, harm

people's wellbeing and freedoms and may involve global security risks. The UN, donors and

regional and continental organisations prioritise integrated approaches for engaging in fragile

situations. The Paris Declaration on Aid Effectiveness recalls that principles of harmonisation,

alignment and management-for-results must be adapted to environments of weak governance

and capacity. The OECD/DAC endorsed a "Policy Commitment and a set of Principles for

Good International Engagement in Fragile States and Situations", emphasising "Whole-of-

government approaches", which require close cooperation between economic, development,

diplomatic and security actors.

The Community and EU Member States together constitute the world's largest development

assistance and humanitarian aid donor. The EU has become an important political and

security actor. It has special responsibilities in addressing challenges posed by fragile

situations, but also comparative advantages such as the worldwide network of Commission

Delegations.

A policy framework already exists for addressing the different dimensions of fragility. The

European Consensus on Development provides guidance on a comprehensive response to

fragility. It is part of a broader external action framework which needs to be comprehensively

activated, for the Union to address fragility in a timely and coherent fashion. This includes,

the European Security Strategy, the EU Programme for Prevention of Violent Conflict, the

European Neighbourhood Policy, the Linking Relief, Rehabilitation and Development

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strategic framework, the Consensus on Humanitarian Aid and the EU approach to governance

and development. The enlargement process contains instruments that can be useful in this

context. EU commitments on Policy Coherence for Development and the EU Code of

Conduct on Complementarity and Division of Labour are part of this framework.

4. TOWARDS AN EU RESPONSE TO SITUATIONS OF FRAGILITY

4.1. Identifying fragility: triggers and features

Fragility refers to weak or failing structures and to situations where the social contract is

broken due to the State's incapacity or unwillingness to deal with its basic functions, meet its

obligations and responsibilities regarding service delivery, management of resources, rule of

law, equitable access to power, security and safety of the populace and protection and

promotion of citizens' rights and freedoms.

Public institutions, political processes and social mechanisms that lack effectiveness,

inclusiveness or legitimacy drive fragility: conditions are not met for achieving a minimum of

institutional and financial development, launching long-term strategies and gradually raising

governance standards. In this context, fragility is rooted in high levels of poverty or in

inequitable distribution of wealth.

In most extreme cases, states can collapse or withdraw from parts of the territory, which can

lead to permanent insecurity, chronic violent conflict and humanitarian crises. A range of

trans-national security and instability threats may also result from these situations, which may

undermine EU strategic objectives and interests.

Fragility features in many low and middle income countries with structurally weak

economies, which are unstable and vulnerable to crises, external shocks, epidemics, drug

trafficking, natural disasters and environmental degradation, as well as endangered cultural

assets and diversity. It can also be a side effect of either globalisation in marginalised areas of

the world economy, or over dependence on the import of conventional energy sources, which

can hamper stabilisation and development. Climate change is expected to exacerbate fragile

situations by introducing new and multiple impacts in low capacity contexts. Further work on

these links will contribute to develop innovative responses or to adapt existing approaches.

From a human security perspective, poor and vulnerable populations are the most affected in

situations of fragility, which may push human capital to leave, through voluntary or forced

migration that may aggravate fragility.

4.2. Engagement in situations of fragility: challenges

Dealing effectively with fragility requires taking deliberately calculated risks that have to be

weighed against risks inherent to non-action. Supporting partner countries' efforts to prevent

fragility, to address its root causes and to tackle its consequences is integrated in EU

partnerships. Even when the application of cooperation agreements is partially suspended, the

EU remains engaged through a mix of Community instruments and EU action, for reasons of

solidarity, security and aid effectiveness.

Avoiding engagement in situations where there are no significant political barriers, may lead

to situations of "aid orphans" and leave an entire country, a region or a sector without access

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to financial resources. On the other hand, the international focus on a given crisis may involve

massive and uncoordinated financial flows leading to overlaps and lack of effectiveness.

The ongoing efforts towards complementarity through the EU Code of Conduct will help

addressing the "aid orphans" issue. In order for EU Member States to effectively channel

additional funds to "orphan fragile states", concrete options should be discussed.

As part of humanitarian aid, the Community addresses this issue through its Forgotten Crisis

Assessment methodology, which facilitates provision of support to victims of crises that

receive little or no media or donors attention.

Comprehensive and coordinated engagement in fragile situations through "Whole of

Government" approaches is necessary. Open communication of data and other information,

synergies and good articulation must be ensured between institutional, state and non-state

actors (humanitarian, development, diplomacy, law enforcement, security), the multilateral

and other donors involved. Important progress has been accomplished but key constraints are

still to be removed.

Further coordination is needed within the EU. Joint training, planning and assessments

involving staff from the Commission, the Council Secretariat and Member States should take

place more systematically, not only in situations of crisis and post-conflict, but also when a

joint analysis shows a deteriorating situation that may aggravate fragility.

Desk-to-desk contacts on fragility related geographical and thematic issues should be further

promoted by the Commission, the Council Secretariat or EU Member States, as well as

mutual information and coordination between EU Heads of Mission in a given country or

region. The UN, other multilateral partners, donors, civil society organisations and institutions

other than central governments (parliaments, local and decentralised authorities, regional and

continental organisations) should also be involved as appropriate in this coordination process.

Preventing and addressing fragility features in the EU/Africa Joint Strategy. Dialogue on this

issue will continue with China and other non-OECD partners with a significant presence in

countries concerned.

4.3. Preventing fragility: dialogue and analysis to identify and tackle triggers of

fragility

Donors, partner countries, regions and organisations, international institutions, civil society

and governments have developed early warning, analytical, monitoring and assessment tools

relevant for situations of fragility. Very often, these tools need to be supplemented by the

appropriate instruments allowing for timely implementation of the outcome of the analysis.

Political dialogue with partner countries, regions and continental organisations is central in all

Partnership and Cooperation Agreements concluded by the EU. Addressing the sources and

consequences of fragility in this dialogue may contribute to building country owned strategies

leading to a durable exit from fragility.

The potential of Country Strategy Papers (CSPs) to prevent fragility needs to be enhanced:

root causes of conflict, expressions of violence, insecurity and risk of vulnerability must be

more systematically addressed through development programmes and ensuring that conflict

sensitive approaches are applied. In the same vein, crisis management and risk reduction and

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preparedness activities must be linked to development considerations and to the CSPs as the

overall EU reference.

4.4. Addressing fragility: strategies and priorities

In situations of fragility, a country, a region or a particular community, is exposed to

excessive strains and threats. Each case requires a differentiated, articulated and holistic

response, articulating diplomatic action, humanitarian aid, development cooperation and

security.

CSPs, jointly prepared with partner governments, are the preferred framework to address

fragility. In order to provide a better overview of the EU response, they should also refer to

interventions under both CFSP and the Instrument for Stability. CSPs can ensure EU

coordination in fragile situations, particularly through "joint programming", which enhances

predictability and facilitates synergies to fit partners' needs and priorities. Engagement

through Community instruments can have an added value because, in certain circumstances, it

can be seen to be more neutral than bilateral cooperation.

In situations that have deteriorated so much that long-term development cooperation is no

longer possible or desirable, the EU tends to apply a mix of political and diplomatic action, in

combination with a certain level of development cooperation and crisis management tools.

Humanitarian aid can be provided in but is not triggered by a situation of fragility as such,

unless there is a slide into crisis with humanitarian implications. As the expression of EU

solidarity with victims of man made and natural disasters, it is neutral, impartial and

independent: it does not imply political engagement and cannot be considered as a crisis

management tool.

Regarding crisis management, the Union has strengthened its ability to act more quickly and

flexibly in relation to crises and situations of fragility. Political dialogue and political

measures such as sanctions are also part of the EU tool box in situations of fragility.

Engagement in situations of fragility should be open to a wide range of players, such as UN

agencies, the Red Cross Movement or in-country actors. Parliaments, decentralised authorities

and civil society have great potential for driving change, which can be maximised by

facilitating their access to funding.

The initial response strategies should address the immediate needs of the population, even if

strategic responses need to focus on the long term. For this, it is crucial to understand how

fragility affects the different groups in a society, in particular women and vulnerable groups

such as children, youth, disabled and minorities, in order to address their needs effectively.

These groups can also act as "drivers of change". Women, in particular, must not be

considered only as passive victims; even if especially in situations of conflict they are

particularly vulnerable to sexual crimes and exploitation. Women and minorities have an

important role in promoting sustainable peace and fostering security, but they usually do not

have access to mechanisms, power and resources, and face discriminatory legal frameworks.

Transition periods offer windows of opportunity to address gender issues and minorities'

rights, through constitutional or legal reviews, reform of the judiciary, and involvement in

setting priorities in the reconstruction agenda.

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4.5. Post-crisis: Linking Relief, Rehabilitation and Development (LRRD)

Consistency in the overall response, the presence of adequate, experienced and well

coordinated human resources and sustained funding are of fundamental importance. Relief,

crisis management, reconstruction assistance and long-term development cooperation must be

properly linked as part of an integrated approach built on the principle of sustainable

development. In this context, the Community has tried to implement the LRRD strategic

framework since the late nineties. This is a long and complex process which involves many

different actors and financial instruments.

The main focus of the LRRD approach has been to build long term strategies on sectors and

actors that are key from the traditional relief perspective, with a view to ensuring continuity

and facilitating synergies. However, governance, institutional development and security have

to be better integrated in the strategic framework. Moreover, funding mechanisms such as

trust funds managed by international agencies, often used in this context, are not always able

to support the implementation of reconstruction and rehabilitation programmes as rapidly as

expected, and although they could in principle help ensuring donor coordination and

coherence, they should not be used as a substitute for local ownership and EU's own presence.

Efforts are still needed to both update the methods of implementation of the LRRD strategic

framework, with due integration of governance and security concerns, as well as to adapt

procedures and financial mechanisms to situations where flexibility is crucial. The purpose

remains to try and achieve better harmonisation of analyses and policies, integration of

strategies (including coordination, coherence, complementarity), and synergy of activities

over a period of time, covering both humanitarian and development approaches to the

situation.

4.6. Security and fragility

Linking peace, security and development, within a country and across borders, is often a

primary concern in fragile situations. Development cooperation makes an essential

contribution to promote peace and stability by addressing expressions of violence and root

causes of insecurity and violent conflict.

The EU has enhanced conflict prevention and crisis management capacities. It is able to act

more quickly and flexibly in relation to crises and situations of fragility. A combined use of

Community instruments, including the specific Peace Facility for Africa and the Instrument

for Stability, and CFSP/ESDP tools, facilitates strengthening national, regional and

continental approaches to fragility.

A broad, developmental approach to security, that integrates human security concerns in

governance related programmes such as SSR and DDR can ensure that the focus is placed on

the security of individuals and their basic needs and rights. An integrated "Whole of

Government" approach to SSR forms the basis for state building strategies and political

legitimacy in post-conflict settings.

4.7. Democratic governance and human rights in situations of fragility

Fragility is most often triggered by governance shortcomings and failures, in form of lack of

political legitimacy compounded by very limited institutional capacities linked to poverty.

Supporting democratic governance, state building, reconciliation processes and human rights

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protection, as well as promoting political will for reform through dialogue and incentives,

rather than through conditionality and sanction, should guide EU action.

Ownership over reforms by all components of the society, including the most vulnerable, is

crucial also in fragile situations. As a result of the programming dialogue, ACP countries have

access to additional funding, according to the relevance, ambition and credibility of their

governance action plans, which are assessed taken into consideration situations of post-crisis

and fragility. This approach could be enlarged to other regions and used by EU Member

States in their bilateral cooperation. The Community has also developed the Governance

Facility in the ENP context.

Human rights promotion is not always ensured in fragile situations, where they are often

violated. In addition to direct support to civil society organisations, to human rights defenders

and to national institutions such as Human Rights Commissions or Ombudsman, and

engagement with Parliaments and decentralised authorities, dialogue is critical to identify and

address constraints.

Promoting democratization requires prioritising needs. Elections are necessary but not

sufficient for moving towards democratic development. An upstream work to promote an

inclusive political society and functioning multiparty systems, with a focus on institutional

development is needed as well as downstream work to promote effective functioning of newly

elected institutions. Moreover focusing exclusively on electoral process may be

counterproductive if it leads to an early donors' disengagement.

In the most extreme cases, the central government is not committed to democratic

governance. Engaging with other actors, such as civil society, local authorities or parliaments

is necessary. In complement, dialogue on less controversial issues, such as service delivery or

employment generation, should continue with central governments, to progressively build

political will for reform. Restoring basic service delivery and job creation are priorities in

fragile situations, where there is often tension between objectives of building institutional

capacities and ensuring access to services, and substitution cannot be avoided.

Sustainable peace requires a legitimate and effective justice sector, which is particularly weak

in situations of fragility. In post-conflict settings, a nationally-owned transitional justice and

rule of law system, engaging official and non-governmental institutions is fundamental.

Parallel advancement of justice and reconciliation initiatives has contributed to stabilizing

divided societies after a conflict. At the same time, the EU and partner countries should

jointly ensure that the most serious crimes of concern to the international community should

not go unpunished and are prosecuted

Environmental degradation and access to or control over natural resources play a central role

in some conflicts, with implications for peace making and post conflict reconstruction.

Positive or negative impact of natural resource abundance in particular depends on capacities

and development orientation of those who manage resources. While donors often have limited

financial and political leverage over these issues, response strategies must be sensitive to them

lest they trigger renewed conflict. The role of private sector actors can also prove crucial. The

EU will continue promoting cooperation in the context of international initiatives against the

illicit trade of natural resources and promoting their transparent and equitable management.

Availability of key statistical information is often essential to addressing issues of

governance, the democratic process, basic service delivery and access to natural resources. An

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effective statistical system is indispensable for poverty reduction, sustainable development

and equitable growth.

5. IMPROVING INSTRUMENTS

5.1. Financial instruments and procedures

Dealing effectively with fragility involves taking risks and requires rapidity and flexibility in

adopting political decisions and making them operational in the field, while dealing

simultaneously with partner countries' constraints, often in terms of limited capacities. In this

context, more flexible and accelerated procedures are also needed, in order to establish

quicker mechanisms that guarantee transparency and accountability, and contribute to a

management-by-results oriented approach.

The EU must improve the use of its wide range of instruments in order to put policies in

practice, enable a comprehensive response to situations of fragility and fill the "implementing

gap". Substantial efforts are still necessary to better link and articulate all possibilities offered

by the range of Community instruments (geographic, stability, humanitarian, thematic), by the

CFSP/ESDP mechanisms, but also by EU Member States' bilateral aid and other donors'

instruments.

This Communication does not require new sources of funding to be mobilised in addition to

the existing Financial Framework 2007-2013. It aims, however, at fostering a better synergy

between the already existing financial instruments, and at establishing an appropriate and

balanced share of financing with the EDF when applicable.

5.1.1. European Development Fund (EDF)

The Cotonou Agreement provisions on humanitarian and emergency assistance foresee

"flexible mechanisms" for post-emergency action and transition to the development phase.

They have been successfully applied in a number of cases. The Commission is currently

working on a set of more flexible implementation procedures to be applied in situation of

fragility. The new provisions on the use of country allocations for unforeseen needs offer

additional opportunities for further flexibility. Furthermore, the ACP disaster facility (under

approval) aims to reduce the vulnerability of disaster prone countries, in conformity with the

"Hyogo framework for action 2005-2015".

5.1.2. Development Cooperation Instrument (DCI) and European Neighbourhood and

Partnership Instrument (ENPI)

"Post-crisis situations and fragile States" are explicitly mentioned among the geographic

programmes for implementing Community assistance in the DCI. In circumstances such as

crises, post-conflict or threats to democracy, the rule of law, human rights or fundamental

freedoms, a special emergency procedure foresees the review of geographic strategy papers

and multi-annual indicative programmes to make the transition to long term cooperation and

development.[. In addition, special measures not foreseen in these strategies and programmes

can be implemented in case of natural disasters, civil strife or crises, when neither the

Instrument for Stability nor Humanitarian aid can intervene. The ENPI includes similar

provisions.

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5.1.3. Instrument for Stability

The short-term component of the Instrument for Stability enables the Commissionto provide

strategic support in relation to potential or real crisis situations and kick-start assistance that

will then be followed up with long-term support under other community instruments. It can be

used in response to situations of crisis or emerging crisis, initial post-crisis political

stabilization, and early recovery from natural disasters, complementing or spearheading

support under the mainstream Community external instruments. The long-term component

deals with trans-regional threat including non-proliferation and organised crime.

5.1.4. Humanitarian aid

Humanitarian aid aims at saving lives and providing immediate relief for victims of crises,

regardless of the level of fragility and the causes of the crisis. Existing procedures to mobilise

humanitarian aid are adapted to this approach.

5.1.5. European Instrument for Democracy and Human Rights (EIDHR) and Thematic

Programme "Non State Actors and Local Authorities in Development"

In the most difficult situations, donors shift from direct engagement with governments to

support other actors that can drive change. Procedures established under the thematic

programme "Non-State Actors and Local Authorities in Development" and the EIDHR are

well adapted to situations of fragility, which support alternative actors in situations that are

not favourable to participatory development or to respect for human rights. Support to human

rights defenders and to the relevant international framework are also foreseen.

The EIDHR is very relevant to fragile situations, due to a special focus on situations where

there is a serious lack of fundamental freedoms and human security, where civil society and

human rights defenders in particular are under most pressure, and where political pluralism

is reduced. The EIDHR will aim at assisting democratic political participation and

representation, and contribute to the peaceful conciliation of group interests. Transnational

and regional support will focus on dialogue and practical cooperation activities aimed at

addressing the sources of deep-seated conflict or potential violent conflict. One of the

specificities of the EIDHR is that can fund activities without partner country governments'

approval. This can be an additional advantage in certain fragile situations. However, the

EIDHR can only act in complementarity with the applicable geographic programmes.

5.2. Budget support

In complement to projects and depending on the sources of fragility, budget support may also

be used to address urgent financial needs, consolidate key State functions (public finance

management) and maintain social stability (payment of salaries or imports financing). It can

also effectively influence the political dialogue on SSR, DDR or civil service reform when

these have an impact on macroeconomic stability.

The Commission has used budget support in the case of several post-conflict countries, to

support the recovery process. Political, developmental, fiduciary or reputational risks are high

in all fragile situations, but they need to be compared with the expected benefits and with the

cost of new crises. Budget support is tailored to manage such risks (by targeting critical

expenditures, audited arrears etc.) and based on a continuous assessment of the

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macroeconomic situation, public financial management reforms and development strategy

outcomes.

6. THE WAY FORWARD: PRIORITIES AND DELIVERABLES

Where partner countries are making efforts to address causes and consequences of fragility,

the EU needs to ensure that the Community, EU institutions and Member States are more

responsive, quicker and more flexible in their support to partner countries' efforts to address

fragility. The Commission proposes to stimulate a debate involving civil society and other

stakeholders as well as to undertake the actions below to launch the preparation of an EU

response strategy to situations of fragility:

The EU should formally endorse the OECD DAC Principles on Good International

Engagement in Fragile States and Situations and commit to implement them in all

situations of fragility.

Issues concerning fragility will more systematically be included in the regular political

dialogue with partner countries that are showing signs of fragility.

Regular exchanges of risk analyses and relevant EU responses at the field level through EU

Heads of Mission meetings and at headquarters through desk-to-desk dialogues between

institutions and member states and across Council groups should take place in order to

ensure whole-of-government approaches.

EU support to countries facing situations of fragility should consistently promote gender

equality, human rights, including a children's rights perspective, and social inclusion.

The Commission will facilitate the establishment of ad hoc Country and Thematic Teams,

involving the Council Secretariat and Member States to address specific situation of

fragility, with a view to:

further develop conceptual and analytical approaches to fragility and conflict, including

SSR and the expansion of the LRRD strategic framework towards integrated responses to

post-crisis and methods of implementation of governance and security concerns;

reinforce EU comparative advantages in situations of fragility, including in the perspective

of the future external service of the EU;

advance towards more coherent and coordinated action at country level, in particular by

making use of all possibilities for single joint analysis and joint programming as provided

in the Common Framework for Country Strategy Papers (CFCSP), to be reviewed

according to the evolution of the situation.

A mapping of bilateral and EU aid modalities under the different pillars will be carried in

order to determine their ability to respond adequately to situations of fragility and to assess

their impact and the way they interact on the ground. .Particular attention will be devoted

to the complementarity between crisis management related instruments such as

CFSP/ESDP joint actions, the Instrument for Stability, the African Peace Facility and long

term cooperation instruments.

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The Commission will take stock of EU assistance efforts to alleviate and prevent security

threats, will make proposals to improve the effectiveness and coherence of EU external

assistance in situations of insecurity and will propose ways to complement the actions at

national and regional levels with a specific framework of responses to challenges of global

or trans-regional nature.

In line with the EU Code of Conduct on Complementarity and Division of Labour, the EU,

after identifying substantial overlaps or gaps at country level, will allocate existing and

additional funds in a complementary way. Complementarity should be aimed at both in-

country or across countries, by deciding who engages in which country. The Commission

suggests to explore the following options for EU Member States to channel extra funding

to fragile states taking in particular into account the orphan ones:

increasing country allocations, when a strategic bilateral cooperation framework exists;

topping up CSPs signed by the Commission and partner countries and disbursed within the

framework of the NIPs managed by the Commission, when a bilateral cooperation

framework does not exist or when pooling financial resources have greater impact

A comprehensive review of assessment and analytical tools on governance, conflict and

disaster monitoring will be carried out.

Fragility will be integrated in the review process on the Governance Initiative for ACP

countries, which will involve regular expert-level cooperation and a report by the

Commission in 2008.

The Commission will improve its capacity to deliver budget support, keeping into account

its specific risks and expected benefits in fragile situations. Coordination with the WB, the

IMF and the AfDB will be reinforced.

The Commission will prepare guidelines clarifying the conditions to apply provisions that

allow the use of flexible procedures under geographic long term instruments.

The EU will seek to further strengthen the partnership with the UN and other multilateral

actors in dealing with situations of fragility. The further consolidation of the Peacebuilding

Commission, and the continued active EU support to a UN reform that aims at equipping

the UN to effectively address situations of fragility are in this respect of fundamental

importance.

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