MEDA programme, Mediterranean countries (Regulation (EC) No 1488/96). Annual report 2000

PURPOSE : to present the Annual report of the MEDA Programme 2000. CONTENT : five years after its launch, the Barcelona Process and its MEDA Programme saw a substantial review in the year 2000. This happened against the backdrop of the worsening situation in the Middle East which had a considerable impact on the Euro-Mediterranean Partnership. Two Euro-Mediterranean Foreign Ministers conferences were held. Based on a Commission Communication, Ministers in Marseilles in November 2000 agreed on a series of measures to reinvigorate the Barcelona Process. The Euro-Mediterranean Association Agreements with Morocco and Israel entered into force. Negotiations for the agreements resumed with Algeria, Lebanon and Syria. Ratification of the agreement with Jordan progressed while the obstacles to the initialling of the agreement with Egypt were removed and led to the Association Agreement's signature on 25 June 2001. In November the Council decided a major amendment to the MEDA regulation (MEDA II). The regulation provides for a strategic programming approach, reinforced dialogue with the partner countries and simplified procedures for faster delivery of aid. In this context, the Commission embarked on a wide-ranging reform of its external aid management which led to the creation of the EuropeAid Cooperation Office. As regards financial cooperation grants and loans committed for the Euro-Mediterranean Partnership activities in 2000 totalled EUR 2.2 billion out of which a large share was supplied by the MEDA Programme. Parts of this sum were due to reconstruction aid following the 1999 earthquake in Turkey and recommitted funds from previous years. In 2000 committed MEDA funds amounted to EUR 879 million. Payments made up EUR 330.5 million (up from EUR 243 million in 1999). Commitments for the Maghreb totalled EUR 246 million, for the Mashrek EUR 163 million and for Turkey EUR 310 million; regional cooperation received funding of EUR 159 million in 2000. In addition, EUR 123 million were committed for the Mediterranean region from other EU budget lines. For 2000-2006 the Council decided to endow MEDA with EUR 5,350 million (laid down in the MEDA II regulation). These grants from the Community budget are accompanied by considerable lending from the European Investment Bank. For the same period the EIB's Euromed lending mandate is EUR 6,400 million. The Bank committed itself to contribute a further EUR 1,000 million from its own resources and at its own risk for transnational projects. In total, EUR 12.75 billion will be available for Euro-Mediterranean Partnership activities over the 7-year period starting from 2000. Bilateral cooperation with nine Mediterranean Partners accounted for about 82% of the MEDA 2000 commitments (EUR 719,3 million). Facilities for direct budgetary support made up the biggest share. Structural adjustment facilities received EUR 150 million (Turkey) and sectoral adjustment facilities EUR 142 million (Morocco, Tunisia) while EUR 90 million were earmarked for the Special Cash Facility II for the Palestinian Authority. I should also be noted that regional cooperation advanced significantly in 2000 through the launching of programmes and projects in the field of industrial cooperation, environment, information society, local water management, transport, energy,audio-visual, cultural heritage, Middle East peace projects and economic and social matters. Visibility of the Euro-Mediterranean Partnership as well as the role of the EU in this policy area were strengthened through a large tool kit of publications, information visits and the cultural activities of the Delegations in the Mediterranean region. In addition, the European Investment Bank signed 19 loans in eight Mediterranean partner countries in 2000 amounting to commitments of EUR 1193 million (up from EUR 945 million in 1999 due to infrastructure reconstruction in Turkey). The EIB also managed EUR 106 million in MEDA funds for interest rate subsidies for three bilateral environmental project loans and four risk capital operations. Lastly, three evaluation reports on the operations of the EIB, the MEDA Teams and the global allocation of MEDA over the period 1995-2000 were produced.�