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External relations - Trade - Development

4. Development and Humanitarian Aid

The EU has become known as the largest provider of aid to many developing countries, particularly those of the African, Caribbean and Pacific (ACP) group - many of which are former colonies of the member states. The European Development Fund is basically a pool of member states’ development funds for the ACP countries, and is administered separate from the main EU budget. The EU also provides humanitarian aid in response to crises around the world. Each year the European Commission hands out more than €7 billion in aid.

The EU promotes respect for human rights worldwide. As a part of this effort, the EU has linked all trade, economic cooperation and development assistance projects to human rights clauses. If a partner country breaches fundamental human rights, the European Union uses its economic leverage to suspend all aid agreements with that country until it complies again with the EU’s human rights standards. Through assistance programmes with developing countries, in particular the ACP group, the EU seeks to strengthen democratic processes, contribute to reconstruction efforts and help countries draft their macro-economic policies.

The EU also runs a range of programmes to help non-member countries in its immediate proximity - Eastern Europe, the Balkans, the Caucasus, Mediterranean and Middle East countries - to develop and strengthen democracy and the market economy by providing expert assistance. The TACIS programme, for example, was launched to support Russia and the former Soviet republics in their transition to democracy and market-based economies after the collapse of Communism. Former Yugoslav countries and the Western Balkans are particularly important to the European Union. Slovenia joined the EU in 2004, Croatia is negotiating membership and others, such as Albania, Bosnia-Herzegovina, and Montenegro, have concluded association agreements with the union as a first step towards full EU-membership.

The Mediterranean and Middle East region has a strategic importance for the EU. In 1995, the so-called Barcelona Process was launched to create a framework for relations with the regions’ countries. Most of them now have association agreements with the Union. The final goal of the EU is to establish a Euro-Mediterranean free-trade area by 2010. Moreover, alongside the United States, Russia and the United Nations, the EU is deeply involved in finding a lasting political settlement to the Israeli-Palestinian conflict.

Through bilateral co-operation agreements, the EU aims to develop relations with non-member countries across a range of areas other than trade and aid, such as scientific research, environmental protection or the fight against illegal drugs. Besides bilateral relations, the EU is actively working with international organisations, such as the United Nations, NATO and the Council of Europe, as well as regional groupings around the world.