The year 2008 posed challenges for the European Union and its development partners across the world. Soaring food and energy prices and the global financial crisis tested the EU's ability to meet ongoing aid commitments and deal with new needs. The European Commission responded swiftly to offset the impact of high food prices on poor countries. The European Union demonstrated its reliability by setting up a €1 billion Food Facility for 2008-2010 from the EU budget by the end of December. In the meantime, the Commission increased its budget for humanitarian food aid from the emergency aid reserve with €140 million and redirected money earmarked for food security to the most vulnerable populations. Furthermore, it called up €200 million from the unallocated reserve in the 10th European Development Fund (EDF). The Commission also undertook to increase levels of macro-financial assistance to countries in need on a case-by-case basis. Despite the economic crisis, the EU and its Member States reaffirmed their commitments to increase development assistance in coming years. Responding in a flexible and effective way to the situation as it unfolds will remain a key objective for 2009.
A truly global dimension
The global nature of the EU's external policies was clearly evident in 2008 as the EU deepened its relations with partners across the world and sought their cooperation on global issues like climate and energy, trade liberalisation and the attainment of the Millennium Development Goals of 2000 by the target date of 2015.
In May, the EU put its relations with Latin America on a new footing at a summit meeting in Lima. Leaders from the two sides adopted an agenda for joint action to focus on two themes: social cohesion and sustainable development. The EU held its first-ever summit with South Africa in July. Georgia became an unscheduled centre of attention in August as a result of the conflict with Russia. The Commission quickly put together a three-year package of up to €500 million. It mobilised a first payment of €60 million for internally-displaced persons in Georgia before the end of the year.
The EU devoted a lot of attention in 2008 to its neighbours in eastern Europe and in the Mediterranean basin. It launched the Union for the Mediterranean with its southern partners in July, while in December the Commission proposed a new Eastern Partnership for its eastern neighbours. Negotiations on a new partnership agreement with Russia, frozen by the EU because of the conflict with Georgia, were unblocked at an EU-Russia summit in November. During the year, the EU provided a total of €498 million in assistance to the Palestinians mainly to cover the running costs of the Palestinian Authority and to support the Palestinian Reform and Development Plan.
Throughout the year, the EU and its African partners started work on the eight thematic partnerships which are part of the ambitious joint strategy adopted at their Lisbon summit in December 2007. The two sides also strengthened their dialogue on global issues, including the impact of the financial crisis, climate change and governance in international institutions. Following on China's increased involvement in Africa, the Commission made proposals for three-way cooperation, EU-China-Africa, to find common solutions to common challenges.
The Commission pressed for more regional cooperation and economic integration among African-Caribbean-Pacific (ACP) partners as a means to promote growth, trade and development. It focussed efforts on negotiations for regional Economic Partnership Agreements (EPAs), with groups of sub-Saharan countries and with ACP countries in the Caribbean and Pacific regions. ACP states also benefited from the regional component of the new EDF, such as a contribution of €300 million to the African Peace Facility, support for ACP institutions and for the Global Fund to fight AIDS, tuberculosis and malaria.
During the year, the Commission continued efforts to conclude formal agreements with strategic Asian partners, China and India, as well as with South Korea and members of ASEAN (the Association of South-East Asian Nations). Assistance to ASEAN concentrates on its integration efforts as outlined in the ASEAN economic community blueprint, and builds on European experience with regional integration tools such as statistics, customs and common standards. The Commission also pursued negotiations for comprehensive Association Agreements (political dialogue, development cooperation and preferential trade) with the Andean Community and with Central America.