Luxembourg's development cooperation - Annual report 2016

Under the Netherlands’ Presidency, Luxembourg took part in the informal meeting of Development Ministers in Amsterdam from 1 to 2 February 2016 and in the Foreign Affairs Council meeting in its development configuration in Brussels on 12 May 2016. Under the Slovakian Presidency, Luxembourg was also present at the informal meeting of Development Ministers in Brussels on 12 September 2016 and in the Foreign Affairs Council meeting in its development configuration in Brussels on 28 November 2016.

Over the course of 2016, the Council in its development configuration, addressed the following major issues:

The new European Consensus on Development

The current Consensus dates from 2005 and must be adapted to the changing situation of the EU and the world over the last fifteen years and to the Global Strategy for Foreign and Security Policy adopted in June 2016. The communication on a new European Consensus on Development of 22 November 2016 proposes to maintain as its main objective the eradication of poverty, while introducing new and current aspects such as security, migration, the role of the private sector as well as – from the implementation perspective – programming and joint action. The revised Consensus is scheduled to be the subject of a joint statement by the Council, the European Parliament and the Commission. It will link the European institutions and the Member States.

Luxembourg welcomed the new European Consensus to adjust it to the new realities; particularly to the Addis Ababa Action Plan, the Agenda 2030, the results of COP21 and the EU’s Global Strategy. It will need to incorporate all the institutions and Member States but not lose sight of its long-term goal: the eradication of poverty, the underlying motivation of the Consensus. The revised Consensus will also need to specify how to cooperate with the private sector and civil society. The approach will need to be based on the aid effectiveness principles at all times and with respect to all its financial and non-financial instruments. For Luxembourg, it goes without saying that official development assistance and the collective commitment of 0,7% will need to be highlighted in the next Consensus, given that ODA has a special importance but is used very differently for (a) the least developed and fragile countries and (b) middle-income countries. Finally, for Luxembourg, the link between humanitarian aid and development needs to be enhanced, even where the two policies follow different principles and use different instruments. Luxembourg believes that two different consensuses must be retained but a solid connection must be created between them.

Post-Cotonou

The Cotonou Agreement between the EU and the group of 79 ACP countries will end in 2020 and the negotiations on a possible new agreement must begin in 2018. The preparatory work has been carried out formally and informally throughout 2016. On 22 November 2016, the Joint Communication “A renewed partnership with the countries of Africa, the Caribbean and the Pacific” was adopted. There is not yet a proposal for a mandate to negotiate, but the Communication sets out the ideas and components of a political partnership with the ACP countries and will be a basis for discussions with the Parliament and the Council. The Communication is consistent with the Commission proposal to revise the European Consensus on Development, which was adopted that same day.

The Communication proposes that a single partnership agreement with the ACP countries should not be concluded – rather, it proposes that an umbrella or framework agreement based on common values and interests be established with the partner countries. This would be combined with regional partnerships for Africa, the Caribbean and the Pacific, in order to address better the regional opportunities and challenges encountered. 

For Luxembourg, the Cotonou Agreement is a unique North-South partnership: it will need to be transformed into an overall political agreement that is “light” but legally binding and explicitly adapted for regional application. Luxembourg is therefore leaning towards supporting the solution proposed by the European Commission. A future agreement must cover our common interests in all political and economic sectors, including development cooperation. This area remains essential, particularly in terms of achieving the Sustainable Development Goals, but its application will require sharply differentiated approaches. 

Other issues

The Council of May 2016 adopted the Council’s conclusions on global value chains. For Luxembourg, the joint work by the trade and development channels was a good way of arguing the case for policy coherence for development.

The Council meeting in May 2016 adopted conclusions on joint programming in the partner countries. In principle, Luxembourg is in favour of joint programming on a voluntary basis but is not yet prepared to substitute its ICPs with the joint document. Luxembourg insists on the need for consistency of the joint programming with other European initiatives.

At the informal Foreign Affairs Council in Brussels on 12 September 2016 in its development configuration, Ministers debated the EU Communication on security and development of July 2016. According to this Communication, ODA will be used for security purposes only in exceptional cases, specific case and under certain precise conditions in order to assist partner countries to address their security problems. Luxembourg also believes that this Communication is consistent with Agenda 2030 and SDG 16. The Grand Duchy insists on the fact that such expenditure should be regarded as ODA in line with DAC criteria.

Over the course of 2016, debates on the migration issue have been very intense at all Council meetings. Debates in the fora responsible for development cooperation policy have centred upon an approach that links development and humanitarian policies with the goal of promoting economic development, resilience and access to work and education. Agenda 2030 sees migration as a potential driver of development while recognising that forced displacement is an important challenge. For Luxembourg, development cooperation can make a useful contribution to combating the deeper causes of irregular migration and forced displacement but it is not the only tool required to reduce the pressure of migration. The conclusions of the 2015 Valetta Summit were a fair and balanced reflection of the situation and must form the basis of discussions with the countries concerned, while the European response to the Syrian, Iraqi and Afghan crises will be different. In collaboration with the Directorate of Immigration, the Directorate for Development Cooperation and Humanitarian Affairs has been monitoring the decisions that arose from the Valetta Summit.