European Commission DG Development EC Responses to Soaring Food Prices Philip Mikos – DG...
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Transcript of European Commission DG Development EC Responses to Soaring Food Prices Philip Mikos – DG...
European Commission DG Development
EC Responses to Soaring Food Prices
Philip Mikos – DG Development
Policies for the Sustainable management of natural resources
European Commission DG Development
Contents
Setting Food Price Developments Political Scenery
EC Response Communication COM321 Developing Countries: Non-Paper
Response Instruments Humanitarian Instrument FSTP EDF 10 – B-envelope Food Facility
European Commission DG Development
Setting – Price Developments
European Commission DG Development
Setting – Political Scene
UN HLTF FAO Conference 3-5 June EP Resolution 22 May Council Conclusions 20 June G8 Leaders 7-9 July UN GA, 22-25 Sept
European Commission DG Development
EC Response – COM 321
‘Tackling the Challenge of rising food prices. Directions for EU action’
On causes, prospects and impacts (EU and global)
Elements for EU response: Actions to mitigate the effects of price increases
in the short-medium term (intra-EU) Actions to enhance agricultural supply in the long
term (intra-EU) Actions to address the crisis at international level:
DDA conclusion Scale up humanitarian contribution Providing development support
European Commission DG Development
EC Response – DEV Non-Paper
Proposes EU response strategy with aim to significantly reduce the negative effects of the food price rises on the poorest consumers in developing countries, while at the same time encouraging a positive supply response from farmers in these countries.
Short, medium and long term actions, including: Short: humanitarian response, financing of consumer
needs, policy dialogue Medium: expansion safety nets, rapid provision agricultural
inputs Long: agricultural investments, sustainable safety nets, risk
management
European Commission DG Development
Instruments – Humanitarian Assistance
Upfront mobilisation of resources Additional allocation of € 140 million for
food assistance -> € 363 million for 2008
To cover additional costs related to increase in food prices (and transport costs)
Working through International Organisations and NGOs
European Commission DG Development
Instruments – FSTP 2008
First response from development instruments through reallocation of 2008 funds (€ 50 million)
Allocated to 12 priority countries Coverage:
Safety nets/ social transfers Agricultural production measures
DCI Committee July; Commission Decision August
European Commission DG Development
Instruments – EDF 10 B-envelope
Up to Euro 200 million; additional allocation 30 countries
Highly vulnerable Hit by food price increases (Balance of Payments
effect)
Mainly used for ‘fiscal compensation’ and urban safety nets
Budget support or project support (range of possible actors)
EDF Committee of 24 September -> Commission Decision in course of October
European Commission DG Development
Instruments – Food Facility ?
EC proposal, adopted by Commission 18 July
Co-decision procedure Parliament: Mitchell Report with
amendments voted on 7 October Discussions ongoing in Council Main Issues
Budget Heading Comitology Implementing Organisations
European Commission DG Development
Food Facility - Objectives and Scope
Aim: rapid and direct response to the increased food prices in developing countries
Primary objectives: Encourage a positive supply response of
the agricultural sector Support activities to respond rapidly and
directly to mitigate the negative effects of high food prices in line with food security objectives
European Commission DG Development
Food facility – Key features of EC Proposal
Short-term: in-between emergency and long-term development cooperation
Time-bound: operational in two years (2009 and 2010), using 2008 and 2009 budget commitments
€ 1 billion; Focus on agricultural supply response; in
some countries safety nets (preferably productive)
Contracts with International and Regional Organisations
European Commission DG Development
Food facility - Implementation
List of target countries Differentiated approach, dependent on development
contexts and impact of soaring food prices in target countries
Eligible activities: Improve access to agricultural inputs and services Safety net measures (aiming at maintaining/improving
agricultural productive capacity, and addressing the basic food needs of the most vulnerable populations)
Activities per country identified in collaboration with International and Regional Organisations
European Commission DG Development
Food Facility - Indicative Time-schedule
Assumes successful discussions EP- Council-COM in weeks to come
September – December : technical preparations for Commission Decision
December: Adoption Regulation by co-legislators, entry into force Regulation
Late December: implementing Commission Decision
Early 2009: contracting and start implementation of first measures