BEPA Monthly Brief - March 2010, Issue 35 1 Bureau of European Policy Advisers: a Fresh Start by Paola Colombo

BEPA Contents page MONTHLY Bureau of European Policy Advisers: a fresh start 2

EU Agenda on Globalisation: the case of the European Com- 4 BRIEF mission’s International Dialogue on Bioethics

Experts discuss Europe’s role in a new world order 7 Event hosted by the Bureau of Policy Advisers (BEPA)

Euro-African Institute on Remittances: a deliverable for 2010 9

March 2010, Issue 35

EDITORIAL by Stefano Bertozzi

With the advent of the new Commission, the layout and Lisbon Treaty will generate momentum behind this major content of the BEPA Monthly have changed slightly. Some initiative. It also gives a detailed account of the recent meet- parts have been discontinued and more careful attention ing which took place in Madrid on 4 and 5 March 2010. will be paid to the selection of subjects disseminated within Finally, the author argues in favour of the EU acceding the the Commission, including recent initiatives undertaken by Council of Europe Convention for the Protection of Hu- BEPA. March's BEPA Monthly covers four main issues, man Rights and Dignity of the Human Being with regard to namely the recent reform to streamline BEPA and make it applications of biology and medicine. more responsive to the constantly-changing needs of the The third lead article, by Margaritis Schinas, is highly topical President and the College, the major role played by the In- and provides valuable insights into Europe's role in a new ternational Dialogue on Bioethics in cultivating closer inter- world order and the challenges lying ahead in the interna- national cooperation in the field of bioethics and human tional arena. It draws on the results of a seminar hosted by rights, the ongoing discussion on the emergence of a new BEPA on 16 February 2010 and examines, among other global order and its attendant challenges for the European things, the interplay between power, interdependence and Union as an international player and, lastly, the case for es- crisis as the main drivers of change and the inter-relation tablishing a Euro-African Institute on remittances, which between established and emerging patterns of international would make a direct, positive impact on the living standards governance like the G7, G8 and G20 and Europe's standing of many families in Africa. and performance in this diverse and complex international To explain BEPA's newly adopted structure, the first lead setting. article, by Paola Colombo, starts by recapping the origins of Remembering the political commitments made at the first BEPA, before providing insights into the core activities of Africa-EU Ministerial Meeting on Migration and Develop- this unique Commission department, which brings added ment, which was held in Tripoli in November 2006, the value both to analytical work and policy advice. It also takes fourth lead article, by Stefano Bertozzi, makes a case for a close look at the dynamics between BEPA and the private establishing a Euro-African Institute on Remittances. Since office of the President and the Spokesperson's Service. the Commission will be taking part in the next Africa-EU The second lead article, by Maurizio Salvi, offers a convinc- Ministerial Meeting on Migration and Development, which ing analysis of how the International Dialogue on Bioethics is planned under the Belgian Presidency, the author argues has contributed to securing closer cooperation, both at that setting up this Institute could be a realistic deliverable European and at international level, in the field of human in the second half of 2010 if Europe wishes to keep its po- rights and bioethics and of how the entry into force of the litical capital vis-à-vis its African partners intact.

Editor: Stefano Bertozzi (Tel. 21220) Assistant: Isabelle Dro (Tel. 71996)

Disclaimer: The views expressed in the BEPA Monthly do not necessarily reflect those of the European Commission. BEPA Monthly Brief - March 2010, Issue 35 1 Bureau of European Policy Advisers: a fresh start By Paola Colombo

Introduction was restructured to better meet the needs of the On 9 March 2010, the College approved the reor- new President. It was rebranded as the Bureau of ganisation of the Bureau of European Policy Advis- European Policy Advisers (BEPA), and was struc- ers (BEPA). This followed a complete review of its tured into three teams: political, economic, and so- mission and structure with the aim of bringing cietal. about a new organisational chart and fresh operational methods. The purpose of the reorganisation A new mission to respond to new challenges of the service is to adapt it to the President's and Since 1989 the face of Europe has changed sub- College's needs, to refocus its mission and the way stantially. This has had a big impact on both the it liaises with its principal constituents. role of BEPA and the environment in which it operates, whether from an institutional perspective BEPA is the smallest autonomous Commission (new Treaty, new inter-institutional dynamics) or service with a unique interdisciplinary nature. It re- linked to evolving trends (global crisis, changing ports directly to the President and operates under demands on the EU structure). his authority. This is a huge privilege, but also a huge responsibility. What also makes BEPA rather Against this background, BEPA will continue to original in the Commission is that its mission, its carry out its core tasks, namely support and policy task, is not that much linked to the daily operations, advice to the President on specific tasks, outreach but to developments and trends that are relevant to to civil society, institutional activities in the field of policy-making in the medium and long term. ethics in science and new technologies, and pursuit of the dialogue with religions, churches and com- The Bureau is composed of a professional staff of munities of conviction. advisers, policy analysts and support staff, with ap- propriate experience and a proven track record, in The studies, the links with think tanks, stake- order to provide professional and targeted policy holders, academia, civil society, churches and com- advice to the President and to the College. munities of convictions, ethics, should be used as a fertiliser to fertilise policy, and should not be an end Where does BEPA come from? in itself. The origins of what is today known as BEPA go Hence, BEPA’s structure, the constituencies it ad- back to 1989, when the Forward Studies Unit was dresses, and the delivery methods have now been established by the European Commission as a small reviewed and more clearly focussed. Of particular "think tank" staffed with EU officials reporting di- importance is the need to ensure a close coopera- rectly to President Jacques Delors. The Unit's pri- tion and complementarity between the different mary task was to monitor and evaluate European services providing direct support to the President. integration by studying long-term prospects and structural tendencies, basing itself particularly on a Indeed, the mission of BEPA is complementary to network of external contacts with research insti- that of the President's Cabinet and to the Spokes- tutes specialised in long-term forecasting and plan- persons' service (SPP). The Cabinet provides day- ning. to-day management of the President's political activities, and the SPP is dedicated to media outreach. In May 2000, Romano Prodi changed the Forward BEPA will complete this picture by providing sup- Studies Unit into the Group of Policy Advisers port to the Cabinet on specific subjects, as well as (GOPA) under his direct authority with new re- policy advice of a more long-term nature, and by sources from within and outside the Commission. complementing the SPP's operations through its He entrusted it with four specific domains: eco- own outreach to civil society. nomics, social affairs, foreign affairs, and dialogue with religions. The Reorganisation: key features With the arrival of José Manuel Barroso as Presi- A New Structure dent of the European Commission in 2004, the In order to reflect the above, BEPA's structure has idea of having a group of dedicated advisers was been reorganised into two teams, replacing the not only maintained, but further improved. GOPA three thematic areas, namely:

2 BEPA Monthly Brief - March 2010, Issue 35 · the "Outreach" team, which is divided into and technological developments which may have the following three sectors: an influence on EU policies and the decision- making process. The CSA will report directly to the – "Speechwriting" sector, which works in President while the administrative support will be close coordination with the President's provided by BEPA. cabinet and the SSP, – "European Dialogue" sector, which co- External and Internal Expertise ordinates contacts with think tanks and The President, and the Commission at large, will academia on general issues of European require, in this second term, analytical work and integration as well as contacts in the fields constructive engagement with think tanks, research of culture and art, institutions and academia. BEPA should also play an important role in communication, both through – "Global Dialogue" sector, which sup- the work of the President's speechwriters and ports the Cabinet on external relations through other means of communication, such as issues. This sector also ensures the general policy reports, papers, presentations and work- liaison with churches and communities of shops. These should be directed in particular at re- faith, in order to take into account the searchers and opinion leaders, but also, on occa- global dimension of inter-religious dia- sion, at the general public. logue. BEPA’s work is applied, policy-oriented and aims · The "Analysis" team, which provides policy at relevant and timely production of information analysis and general or specific policy advice and advice. BEPA does not pretend to have de- as solicited by the President and the Cabinet, tailed answers to all policy questions/problems. in close liaison with similar structures in However, on top of its in-house capacity to provide other Commission Services. It is also respon- analysis and advice, it offers the possibility to tap sible for organising regular meetings between different sources of expertise and to facilitate the the President and the Cabinet on the one dialogue between the academic world and policy hand, and relevant experts and academics on making. BEPA has this well-established link with the other. It notably manages the advisory the major thinkers in Europe. bodies created for and by the President, and ensures support for the Chief Scientific Ad- Indeed, BEPA draws on its group of experts and viser and the European Group on Ethics in external and internal network of contacts to gener- Science and New Technologies. ate ideas and to contribute to its activities. BEPA collaborates with stakeholders inside and outside Last but not least, the Coordination Unit, which the European Commission in order to leverage its provides direct support to the Head and Deputy know-how. In order to perform these tasks, BEPA Head of BEPA, is in charge of coordination of requires professionals of high reputation and exper- horizontal and administrative activities. tise. The Chief Scientific Adviser Of particular interest to the work of BEPA will be In his investiture speech before the European Par- its capacity to react to changing policy scenarios liament, the President announced the creation of with a high degree of flexibility. This will be the office of a Chief Scientific Adviser (CSA) "as achieved by including staff drawn from within and part of a fundamental review of the way European from outside the Commission on a temporary ba- institutions access and use scientific advice". The sis. CSA will provide "proactive, scientific advice External input will continue to be obtained by es- throughout all stages of policy development and tablishing operational networking with selected pol- delivery" to the President, and through him to the icy centres and universities, and regular interaction College. At the same time, the CSA will give the with experts in different possible forms. Commission regular updates on major scientific

3 BEPA Monthly Brief - March 2010, Issue 35 2 EU Agenda on globalisation: the case of the European Commission’s International Dialogue on Bioethics By Maurizio Salvi

1. Preamble Dr No•lle Lenoir, former French Minister of Euro- On 28 and 29 November 2007, the Bureau of pean Affairs delivered a keynote speech immedi- European Policy Advisors (BEPA) hosted the ately after the opening by the Chair of the Euro- 7th meeting of the United Nations Inter-Agency pean Parliament's Scientific Technology Options Committee on Bioethics, a forum for debate and Assessment Commission, Mr Busquin, and Com- exchange of information between UN Agencies missioner Ján Figel for Education, Training, Cul- and International Organisations in the field of ture and Youth. This meeting brought together bioethics and human rights. It was the first time EGE Members, the Chairs of 15 non-EU National the UN Committee was hosted by the European Ethics Councils (Argentina, Australia, Brazil, Can- Commission and started BEPA international ac- ada, China, Egypt, India, Indonesia, Japan, Mexico, tivities in bioethics. Philippines, Russia, USA, South Africa, and PA- BIN – a cluster of African NECs), the Chairs of the Subsequently, in 2008, BEPA decided, with the National Ethics Councils of the 27 Member States backing of the President's Cabinet, to establish of the European Union and representatives of in- an International Debate on Bioethics clustering ternational organisations. The Chairs of NECs the Chairs of National Ethics Committees of 15 unanimously agreed to have the International De- non-EU countries and the Chairs of National bate on Bioethics organised on an annual basis, Ethics Committees of all EU Member States. with the EC (BEPA) leading this initiative and pro- This initiative was designed to make global dia- viding its Secretariat. logue and international cooperation between EU and non-EU National Ethics Councils easier, and to cultivate values across the breadth of EU 3. The second meeting of the International policies, in collaboration with international or- Dialogue on Bioethics ganisations engaged in bioethics (e.g. Council of On 4 and 5 March 2010, the second meeting of Europe, WHO, and UNESCO). the International Dialogue on Bioethics took The initiative implemented measures set out in the place in Madrid, Spain, under the auspices of the 2008 EC work-programme where it was specified Spanish rotation EU Council Presidency and the that "the Commission will be focusing on deliver- Spanish National Bioethics Council. The event ing core policies for the globalisation agenda being was chaired by the President of the EGE, and fully aware that internal and external policy goals the Chair of the Spanish NEC, representing the are intertwined as never before, underpinning the Spanish rotation EU Council Presidency. Key- need for a modern and integrated vision on how to note speakers included Mr Margaritis Schinas, project, promote and protect Europe's interests and Deputy Head of BEPA; Mr Antoniõ Fernando values successfully". Correia de Campos, Member of the European Parliament's Scientific Technology Options As- sessment commission; Sir Michael Marmot, Rap- 2. The first meeting of the International Dia- porteur of the UN report on "social determi- logue on Bioethics nants of health". Participants also included the On 9 February 2009, BEPA organised the first Chairs of the National Ethics Councils from 41 meeting of the European Commission Interna- Countries from five continents and the Heads of tional Dialogue on Bioethics. The event was the bioethics sectors of the Council of Europe chaired by the President of the European Group (Ms Laurence Lwoff), UNESCO (Ms Dafna on Ethics of science and new technologies (EGE), Feinholz) and the World Health Organisation and the Chair of the National Ethics Council (Ms Marie-Charlotte Bouësseau). (NEC) of the European Union Member States hav- Mr Schinas explained the policy changes that had ing the Council Presidency and representing the been introduced by the entry into force of the EU 27 NEC Forum, Prof. Josef Ku•e. Lisbon Treaty and stressed the role of ethics in

4 BEPA Monthly Brief - March 2010, Issue 35 the EU policy design. Mr Correia de Campos these values is now a main objective of the made it clear that EP supported the European EU. The International Dialogue on Bioethics Commission's International Dialogue on Bio- not only made explicit this approach with EU ethics and put emphasis on the importance of and non-EU NECs but put forward the EU fundamental values in EU policies. Sir Michael approach to ethics: to strike a balance be- Marmot gave an account of the social determi- tween ethical and socio-cultural diversity, nants in the health sector and their impact on both at EU level and globally, while respect- global health. ing internationally recognised fundamental The Chairs of the EU 27 National Ethics Coun- values and the EU Charter of fundamental cils and the Chairs of 14 non-EU National Eth- rights. For example the EU will accede the ics Councils discussed issues related to ethics of European Convention on Human Rights biomedical research, placing particular emphasis thereby having an additional instrument to on epidemics (SARS, HIV) and on the role that consolidate the protection of human rights ethics plays in science and technology govern- on the European continent and in its bilateral ance. or multilateral external policies. As far as bioethics is concerned, the EU could also con- At the end of the discussions, it was agreed that sider acceding to the Council of Europe Con- the role of the International Dialogue on Bio- vention for the Protection of Human Rights ethics complemented the work on bioethics car- and Dignity of the Human Being with regard ried out by UN Agencies (UNESCO and WHO) to the Application of Biology and Medicine or other international organisations, in particular (Oviedo 19971). This decision will provide the Council of Europe. the EU with additional normative tools for the protection of human rights in the biomedical field. 4. Policy relevance of the initiative · The notion of Europe as a community of The number of policy areas covered by bioethics values as well as a global player of globalisa- and ethics of science includes, inter alia, pharma- tion policies, are now two main objectives of ceuticals, bio-safety, patenting, trade, agriculture, the EU (Europe 2020 and the EC political climate change, food security, clinical research, guidelines). The International Dialogue on embryo research, bio-security, alternative energy, Bioethics is a tool to implement a responsible millennium goals, ICT, surveillance technologies, use of science and technology, both within animal welfare, etc. Examples of EC policies of the EU and worldwide. specific importance for the International Debate on Bioethics are: The adoption of the Charter and of the Treaty of Lisbon has therefore turned respect for EU fun- · According to the Lisbon Treaty, a single legal damental values into one of the core political personality for the Union will strengthen the priorities for the EU. The First European Coun- Union's negotiating power, making it more cil President, Mr Van Rompuy, the President of effective on the world stage and a more visi- the Commission, Mr Barroso and the President ble partner for third countries and interna- of the European Parliament, Mr. Jerzy Buzek tional organisations. The International Dia- have all made it clear the importance they attach logue on Bioethics aims to implement this to the protection of fundamental rights. In his change in the bioethics fields by making the first speech after his nomination on 19 Novem- EU position on bioethics more visible and ber 2009, Council President Van Rompuy states discuss different bioethics regimes across the that "Europe was a community of values", and world. Commission President Barroso said to the Euro- · The Lisbon treaty introduces the Charter of pean Parliament: "Our union was founded on Fundamental Rights into European primary values: respect for human dignity, freedom, de- law. The Charter identifies a set of European mocracy, equality, the rule of law and respect for values, such as human dignity, freedom, de- human rights." (President Barroso, European mocracy, protection of human rights, plural- Parliament Plenary: vote on new College, Stras- ism, non-discrimination, tolerance, justice, bourg, 9 February 2010). European Parliament solidarity, and gender equality. Promoting President Jerzy Buzek on the European Day 5 BEPA Monthly Brief - March 2010, Issue 35 against Death Penalty (10 October 2009) said: ance of science and technology. The fact that "The European Day against the death penalty is BEPA has been asked to lead this initiative is a the day on which we recall that the defence of glowing testimony to the role the EC plays human rights and a justice system based on the worldwide. And the International Dialogue on full respect of human dignity is a key part of our Bioethics may be a tool, which can be instrumen- shared European values." tal in achieving this goal. For example, on 6 July 2009, the USA National Institute of Health (NIH) released the final guidelines for human 5. Conclusions embryonic stem cell (hESC) research. These Over the past two decades, ethical reflections guidelines are the result of President Obama's have been institutionalised in the sense that they Executive Order to overturn the prior admini- are addressed by National Ethics Councils in stration's policy restricting federal funding to re- European countries in order to stimulate the search using hESC lines derived before 9 August broader public debate, address ethical pluralism 2001. The NIH position on the ethics of hESC and to be consulted by political actors. Political benefited of discussion on the EU position on leaders are those who have to translate ethics this sensitive issue taking place at the first meet- provisions into the formulation of local policies ing of the international dialogue on bioethics. eventually. EU or non-EU National Ethics The NIH final guidelines are now fully consis- Councils, while per se having an independent ad- tent with the FP7 ethics provisions on hESC and visory status, are generally established by the the EGE Opinion on ethics reviews of FP7 re- Council of Ministers or National Parliaments in search projects using human embryonic stem order to provide ethics advice for the policy de- cells – hESC. Legislation codifying US President sign in different policy sectors. They therefore Barack Obama’s policy of allowing federal fund- indirectly influence the Countries' decision- ing for human embryonic stem-cell research was making processes in several policy areas where then introduced in Congress on 10 March 2010. the Commission is active at global level. Ap- This exchange of information and research re- proval of clinical trials, marketing of pharmaceu- sults will help transatlantic dialogue and coopera- tical products, patenting of biological materials, tion on this complex and sensitive research field collection and sharing of personal data are exam- in the future. This closer cooperation will also ples of this policy framework. benefit the international community as a whole, as it will enjoy consistency in standards and The open debate that the International bioethics products. dialogue facilitates is therefore not only a practi- cal example of EC action at global level, but also a tool to clarify common and divergent bioethics ENDNOTES positions that may affect the implementation of 1 http://www.coe.int/t/dg3/healthbioethic/ international ethics standards on global govern- Activities/01_Oviedo%20Convention/default_en.asp

6 BEPA Monthly Brief - March 2010, Issue 35 3 Experts discuss Europe’s role in a new world order Event hosted by the Bureau of Policy Advisers (BEPA) By Margaritis Schinas

Hosted by BEPA, distinguished globalisation sequences of these powerful underlying trends experts from nine EU states and the European for global governance. Commission met in the Commission's Berlay- The Director General's address was followed by mont Building on February 16 2010 to discuss introductory remarks of Josef Janning, Bertels- the emerging new global order and its challenges mann Stiftung, Allan Larsson, Global Utmaning, for the European Union as an international ac- and Antonio Missiroli, European Policy Centre. tor. This meeting marked the launch of a new Mr Janning framed the debate by delivering an cooperation project jointly initiated by the Ger- overview of the global political agenda. He ar- man Bertelsmann Stiftung, the Swedish think gued that we are currently witnessing the emer- tank "Global Utmaning" and the Brussels-based gence rather than the building of a new world European Policy Centre (EPC). Drawing on ex- order, with the result that even the main actors pertise from think tanks and research institutes do not fully understand the process in which from the EU and beyond, the project will pro- they are involved. In his analysis of key political mote a series of policy debates aiming at analys- challenges facing decision-makers, Mr Janning ing and enhancing Europe's role in a new world noted that these challenges could be clustered order. around the notions of shaping interdependence, The meeting focused on three items featuring re-balancing the new oligopoly of great powers high on the EU's international agenda: the inter- established by the United States of America, section between power, interdependence and China, India, Russia, Brazil, Japan and the Euro- crisis as drivers of change in our globalized pean Union, and countering the regressive po- world; the interplay between established and tential of conflicts and crises resulting from un- emerging patterns of international governance even gains from the processes of globalization. like G7, G8 and G20 and Europe's performance Allan Larsson's introductory remarks concen- in such fora, and the implications of the Copen- trated on the lessons to be learned from the hagen summit for the EU's climate policy. global financial and economic crisis. He argued BEPA's Director General Vítor Gaspar opened that the current crisis has revealed that the eco- the session by stressing that, from an economist's nomic growth models of the past ten to twenty viewpoint, Europe and countries with population years are unsustainable. A new world order of predominantly European origin underwent an should be about how to provide for a recovery unprecedented process of transformation in his- that is based on rethinking, reorientation and tory. For more that two hundred years their de- reform on a global scale. Mr Larsson elaborated velopment was characterized by fast population on five main fields of reform that would deter- growth and even faster GDP growth (reflecting a mine the characteristics of the future global or- steady increase in GDP per capita). These trends der: current patterns of global governance; the led to a growing share of the world's GDP which need to overcome financial imbalances, giving reached its peak in 1950. According to recent new momentum to financial market reforms, forecasts, surveyed in a BEPA report "Europe providing for a new climate order by the estab- 2050", world population will stop growing in lishment of a CO2 price floor and a framework 2050, following, with a lag, European trends. At for sustainable climate investments; and promot- the same time, GDP would continue to grow ing adequate social protection worldwide by a globally as would GDP per capita in Europe, but new global social order. the European share of global GDP would de- Antonio Missiroli took a different approach, cline. In other words the rest of the world would questioning the traditional notions of power and be sharing in the immense potential unleashed by interdependence. He emphasised the need to the Industrial Revolution. Gaspar concluded that think along functional lines and to pay particular the global crisis marked a transformational mo- attention to the interdependence of issues when ment when Europe will have to face up the con- addressing new patterns of global governance. 7 BEPA Monthly Brief - March 2010, Issue 35 Currently, neither the international system nor its Brazil, South Africa, India and China not to ac- institutions like the UN Security Council, the cept significant CO2 reduction targets. The ex- World Trade Organisation, the International ample of the BASIC countries illustrated that the Monetary Fund, the World Bank, the G20 or the EU has paid little attention to proactive climate G8 provided this kind of functional interdepend- diplomacy aiming to build "coalitions of the will- ence. In addition, Mr Missiroli addressed the ing". Although EU leadership by example would problem of the western dominance in the current no longer be sufficient, there was broad agree- international system, including the over- ment among the experts that the EU should representation of the EU Member States in inter- move to a 30 per cent emission target, thus creat- national organisations, which in fact limited the ing stronger internal incentives for private invest- EU's influence. He concluded by addressing the ment, and combine these efforts with external question whether there should be a new "global low carbon partnerships. Starting from the ob- contract" as proposed by Amartya Sen. servation that the agenda had shifted at Copen- Contributions by Moreno Bertoldi, DG EGFIN, hagen from narrow environmental policy to European Commission, and Alyson Bailes, Col- broad-based economic transformation, the de- lege of Europe, Bruges and University of Ice- bate focused on a two-track climate policy strat- land, dealt with the future interplay between G7, egy for the EU: on the one hand Europe should G8 and G20 and possible approaches towards continue to work for a comprehensive and le- improving the global stance of European inter- gally binding CO2 cap-and-trade regime which ests and values. Mr Bertoldi doubted that there is could be conceived along the lines of the anything like an informal US-China G2. Profes- "Budget Approach" developed by the German sor Bailes said that a bigger international role for Advisory Council on Global Change. First, how- Europe is not necessarily better. In the global ever, the EU should strictly pursue a climate and economic field, Europeans should try first to growth strategy aimed at promoting sustainable identify their true interests, strengthening the investments that are required to transform the rule of law and securing energy/raw material old fossil economy into an economy based on supplies. Europe would, Ms Bailes said, also renewables. need new approaches towards multipolarity, in- While the performance of the European Union cluding intensified efforts to build coalitions with as an international actor is frequently weakened regions that followed the EU's integration by the unwillingness to speak with one voice, i.e. model, such as Southeast Asia and Latin Amer- to communicate a common message, this was ica. With regard to the future role of G20, she not the case in Copenhagen, where the EU 27 asked whether the EU should support a diversifi- had closed ranks. Nevertheless, strategic short- cation of the G20 agenda in a similar way as it falls and their difficulties to define and defend did in the case of G8. common European interests and values was a In the afternoon session, participants discussed recurrent theme during the expert session. which lessons Europeans should learn from the In his closing keynote speech Joao Vale de outcome of the Copenhagen climate summit in Almeida, Director General External Relations of December 2009. Dirk Messner, German Devel- the European Commission, resumed this thread opment Institute, and Pawel Swieboda, of the discussion by indicating that the entry into demosEuropa, agreed that the EU stood rela- force of the Lisbon Treaty meant that the EU tively alone with its climate policy concept since had ended a ten year period of introspection. there is currently not sufficient international sup- The new treaty would provide a new interinstitu- port for a comprehensive and binding climate tional setting that would open up the perspective regime. In particular, there was an implicit con- of a more assertive European voice on the global sensus between the US and the BASIC countries, stage.

8 BEPA Monthly Brief - March 2010, Issue 35 4 Euro-African Institute on Remittances: a deliverable for 20101 By Stefano Bertozzi The objective of this article is to propose action tive impact on the living standards of many fami- to be decided and taken by the Commission in lies in Africa. This Institute should be responsi- order to deliver on the political commitments it ble, inter alia, for collecting and processing data made on the occasion of the first Africa-EU on remittances and for promoting partnerships Ministerial meeting on Migration and Develop- between European and African countries, mod- ment, which was held in November 2006 in elled on the France-Algeria agreement which Tripoli. In the second half of 2010, the Commis- permits payment of 95% of remittances at local sion will take part in the next Africa-EU Ministe- post offices at competitive prices. It should also rial Meeting on Migration and Development, generate political momentum behind a clear and which is planned under the Belgian Presidency. transparent regulatory framework designed to Although it is not yet clear whether the Africa- maximise the positive impact of remittances, EU Meeting will be organised at Heads of State which are private cross-border transfers from and Government or Ministerial level, it is un- migrant workers to their countries of origin, on doubtedly a politically charged event in the area the living standards of recipients. This regulatory of migration policy. framework should look at the entire "remittance At present, none of the political commitments path", which starts in the host country of mi- made by the EU and the Member States at the grants and ends in the hands of the recipient. Tripoli Ministerial Meeting has been delivered. Along this path, there are "hidden taxes", such as This means that, unless the Commission and the punitive exchange rates, which, one by one, fur- Member States are able to deliver on at least one ther erode the amount of money received by of the political commitments they have made, families and relatives. the credibility of the EU as a reliable partner in This Institute should consist of a headquarters in implementing schemes to support migration and Africa and a branch in Europe. Cooperating development will be seriously undermined. There closely with African countries interested, it needs is therefore a pressing need to turn at least one to develop a transparent regulatory framework, of these political commitments into reality. which could achieve crucial public policy objec- One idea, which can be realised in a limited pe- tives, including consumer protection, a level riod of time, would be to establish a Euro- playing field for all money transfer operators, by African Institute for Remittances, which is cur- sweeping away the exclusivity clause, and strin- rently bogged down in protracted negotiations gent requirements to combat money-laundering between the Commission and the African Union and financing of terrorism. In other words, this (AU). The EU has set aside €1.5 million to start Institute should help market forces enter into up operations, but this money is held hostage to play within a well-established framework with these never-ending negotiations, as the African the aim of enhancing the positive impact of re- Union intends to spend EU money first and then mittances on the living standards of those who inform the Commission how it has been spent. receive them, in particular people living in re- One solution would be to set up first a regional mote rural areas of Africa. Euro-African Institute for Remittances with the A look at the current remittance channels to Af- assistance of ECOWAS. An alternative would be rica makes the case for this Institute even to partner the World Bank, as the World Bank stronger. The exclusivity clause foisted on local and the Commission are both committed to es- banks and other payout institutions by the two tablishing a Euro-African Institute, the Commis- money transfer giants, namely Western Union, sion should explore the possibility of leaving the which holds 40.3% of the African market with its African Union outside this project for the time 16 000 payout locations across the continent, and being. MoneyGram, which has 24.2%, prevents other Why is this Institute so important? It is impor- potential operators from entering the flourishing tant as Europe needs to deliver on this important African remittances market. This duopoly holds political promise, which will have a direct, posi- almost 65% of the total payout market in Africa. The remaining 35% is covered by other money 9 BEPA Monthly Brief - March 2010, Issue 35 transfer operators (e.g. Money Express). The re- mittee (DAC) totalling US$26 billion, of which sult for migrants and their recipient families is US$ 22.5 billion went to Sub-Saharan Africa. that the commission fees charged for any money Given the current commission fees ranging from transfer to Africa range from 15% to 10% of the 10% to 15%, this means that migrants and recipi- amount to be sent home. This has led to an in- ent families suffered a financial loss of between crease in the informal channels for money trans- US$4 billion and to US$6 billion in 2008. If the fers to Africa, where the commission charged is new Institute were able to reduce transfer costs also quite expensive (some 8% of the amount to steadily by 1% per year, African families would be transferred). These transfers are not subject to reap a net annual gain of US$400 million. The any control and therefore might also fund illicit ultimate aim of the Institute is to bring the com- activities. By way of comparison, the average of- mission fees down to around 5% of the amount ficial fee for transfers from the USA to Latin sent to Africa (G8 conclusion). Although it is America is between 4% and 3%. In practice, this essential to respect the private nature of remit- has spelt the end for informal channels to Latin tances, these additional funds can fuel higher America, as market forces have driven prices be- consumption, improve education opportunities low the fees charged by informal "operators". for children, extend health coverage for families This is due to the fact that the regulatory envi- and even become powerful drivers of socio- ronment governing money transfers from the economic development. There is therefore an USA to Latin America is clear, transparent and urgent need to reduce transfer costs and establish open to any operators meeting standard require- a transparent and efficient regulatory framework. ments, whereas in Africa the regulatory environ- This would also be in line with the one of the ment is shaped by the exclusivity clause, which political commitments made at the first EU- stifles competition. Africa Ministerial Conference in November In this context, it is important to stress Point 134 2006, namely: "Helping set up mechanisms, ser- of the conclusions of the G8 Summit, held from vices and effective financial products to facilitate 8 to 10 July 2009 in L'Aquila, which states that: the transfer of remittances, to reduce the costs of "Given the development impact of remittance these transfers and to make them conductive to flows, we will facilitate a more efficient transfer development, bearing in mind the private nature and improved use of remittances and enhance of remittances." cooperation between national and international Establishment of the Euro-African Institute for organisations, in order to implement the recom- Remittances would show that Europe is genu- mendations of the 2007 Berlin G8 Conference inely engaged in making a difference, i.e. in help- and of the Global Remittances Working Group ing Africa to seize fully the opportunities created established in 2009 and coordinated by the by international migration flows. Locating this World Bank. We will aim to make financial ser- Institute in Africa will also signal Europe's readi- vices more accessible to migrants and to those ness to get its hands "dirty" in the field. A first who receive remittances in the developing world. task for this Institute should be to monitor re- We will work to achieve in particular the objec- mittances from those third-country nationals tive of a reduction of the global average costs of who are offered jobs in Europe or in other parts transferring remittances from the present 10% to of the world. To this end, the full involvement of 5% in 5 years through enhanced information, the European Investment Bank (EIB) would be transparency, competition and cooperation with very useful, as this organisation has recently ac- partners, generating a significant net increase in quired solid experience in the area of remit- income for migrants and their families in the de- tances. The role of the EIB would be to help veloping world." commercial and savings banks to handle remit- Why are remittances so crucial for the lives of so tances and to ensure that the exchange rate ap- many families in the less developed world? The plied to remittances is not too high vis-à-vis the table below shows that Africa received remit- official exchange rates. Commercial banks in re- tances totalling US$40 billion in 2008. By way of ceiving countries tend to overcharge customers comparison, in 2008 Africa received official de- not only by applying disadvantageous exchange velopment assistance (ODA) from the members rates but also by charging exorbitant fees for of the OECD’s Development Assistance Com- handling remittances. Moreover, the EIB should

10 BEPA Monthly Brief - March 2010, Issue 35 promote the use of remittances as collateral and strong political guidance, analytical skills, inno- thus allow beneficiaries to borrow a certain vative proposals, adequate wherewithal and amount of capital. This would make it easier for readiness to promote more teamwork within them to set up of small businesses and help fami- the Commission. One of these challenges is, lies who may face unforeseen hardship. undoubtedly, migration policy. To achieve the proposal outline above, it is vital to have the political endorsement of the ENDNOTES Commission and the Member States, along with the full backing of the African countries 1 The views and ideas expressed herein are strictly personal interested in this undertaking. If Europe is to and solely bind the author. be acknowledged as a global player in the intri- 2 Established in 1975, the Economic Community of West cate and challenging international arena, it African States (ECOWAS) is a regional group of fifteen needs to rise to future challenges calling for countries.

Evolution of remittances, bln

60.000 50.000 40.000 AFRICA CHINA 30.000 INDIA 20.000 MEXICO

Absolute Value 10.000 0 2006 2007 2008