The European Consensus, signed on December 20 2005, (2006/C 46/01). replaced the Joint Statement of the Council, Parliament and the Commission on the European Community's Development Policy of November 2000. It represents the first attempt to lay out a framework of common principles to guide the EU's activities in the field of development co-operation, both by Member States and by the EC. It consists of two parts: the first part addressing the objectives, principles and values of EU development policy, applying to the EU Member States and the Community; the second part providing guidance for its implementation at the EC level.

The Consensus is the first document to enshrine the Millennium Development Goals, in all key sectors - basic education, basic health, gender equality, environmental sustainability and HIV& AIDS - as overriding objectives of EU development co-operation. It also sets out the concrete actions necessary to implement its vision at Community level.

1. Core objectives and principles for member state's International Development Assistance (Part 1)

The primary objective of the European Consensus is the reduction of global poverty in the context of sustainable development. This objective is aligned to the achievement of the UN Millennium Development Goals by 2015, to which the EU has fully committed itself.

The common principles governing all EU development co-operation activities are ownership and partnership, in-depth political dialogue, participation of civil society, gender equality and an ongoing commitment to preventing state fragility. Although developing countries bear the primary responsibility for their own   development, the EU accepts its share of responsibility and accountability for all actions it undertakes in partnership with developing countries. 

Financing commitments: The EU will increase the aid budget to 0.7 % of gross national product (GNP) by 2015, the shared interim goal being 0.56 % by 2010, with half of this increase in aid earmarked for Africa. Furthermore, assistance will continue to be directed primarily toward the least developed countries, low-income countries and medium-income countries.

Cross cutting issues: The objective of reducing poverty is closely related to the complementary objectives of promoting good governance and respect for human rights, values which are fundamental to the EU. Furthermore, assistance aimed at reducing poverty must uphold a balance between strategies for economic growth and social development, taking into consideration the protection of natural resources.

The criteria guiding the allocation of resources will be objective, transparent and based on needs and performance. In all its country and regional programming, the EC will be guided by the principle of concentration: this means that a limited number of priority areas for action will be selected and focused on, rather than spreading efforts widely over too many sectors.

Aid effectiveness: The EU will prioritize the quality of aid. Core principles for maximizing the quality and efficiency of aid are national ownership, donor co-ordination and harmonization, starting at the field level, alignment on recipient country systems and results orientation. In order to enable partner countries to plan efficiently, aid mechanisms will become more predictable and less arbitrary.

Effective monitoring is an essential aspect of maximizing the efficiency of aid. To facilitate effective monitoring, concrete targets will be set for achievement by 2010.

Co-ordination and complementarity between donors will be promoted by working towards joint multi-annual programming based on partner country strategies, common implementation mechanisms, joint missions involving more than one donor, and the use of co-financing arrangements.

The EU will foster consistency between development policy and other policy areas, particularly international trade, security and migration.

2.  Priorities of the European Community's International Development Assistance (Part two)

Policy coherence: Development co-operation is understood as a major component of a broader set of external policies. It is crucial that these policies are consistent and complementary. The EC has a responsibility to achieve "Policy coherence for development". This means that all the EC's programming documents - country, regional and thematic strategy papers - should reflect this range of external policies and ensure consistency between them.

Comparative advantage of Community Aid: EC policy aims at complementing the policies of the Member States. Its added value derives from its global presence and its role in promoting consistency between policies and best practice. The EC's most important advantage is its potential to facilitate co-ordination and harmonization between the Member States.

The following main policy areas for European development assistance are identified: trade and regional integration; the environment and the sustainable  management of natural resources; infrastructure, communications and transport; water and energy; rural development, territorial planning, agriculture and food security; governance, democracy, human rights and support for economic and institutional reforms; prevention of conflicts and of state fragility; human development; and social cohesion and employment.

The EC will strengthen mainstreaming in relation to the following issues, which involve general principles applicable to any initiative and which call for simultaneous efforts across several sectors: democracy; good governance; human rights; the rights of children and indigenous peoples; gender quality;environmental sustainability; and the fight against HIV/AIDS.

Implementation 

Finally, the Consensus stresses that a range of modalities will be undertaken based on the needs and performance of each individual country. Where it is appropriate, the preferred aid modality will be budget support. The EC will adopt an approach based on results and performance indicators. The majority of EC aid will continue to be provided in the form of grants, as this approach is particularly suitable for the poorest countries and for those with a limited ability to repay.