What changed

Follow-up to the European Parliament non-legislative resolution on the adoption of the special measure in favour of Tunisia for 2023

B90173/2024

Resolution tabled pursuant to Rule 136(5) of the European Parliament's Rules of Procedure

European Parliament resolution on the adoption of the special measure in favour of Tunisia for 2023

Reference numbers: 2024 /2573 (RSP) / B9-0173/2024 / P9_TA- (2024)0175

(2024/2573(RSP))

Date of adoption of the resolution: 14 March 2024

The European Parliament,

Competent Parliamentary Committee: Committee on Foreign Affairs (AFET)

– having regard to the Treaty on European Union (TEU), in particular to Article 14 thereof,

Brief analysis / assessment of the resolution and requests made in it:

– having regard to the Treaty on the Functioning of the European Union (TFEU),

The European Parliament raises several questions on the EUR 150 million Budget Support for Tunisia (Programme d’Appui aux Réformes macro-économiques), an individual measure adopted on 20 December 2023 under the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI-GE). The questions relate to the need to use an urgent written procedure for the individual measure; to respect parliamentary scrutiny, comitology and to have an informal dialogue with the European Parliament and proactively make available the relevant Financing Agreement.

– having regard to Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (NDICI-Global Europe Regulation),

The Parliament also enquires about the assessment of the Commission in terms of fundamental values to justify the adoption of the programme and the baseline for the assessment of fundamental rights’ situation; the conditionality applied to the programme and its assessment; the choice for a single tranche programme and the political commitment of the Memorandum of Understanding (MoU) to pay in full; the contribution of the action to improving business and investment climate; the reasons for Tunis’ rejection of the recent EUR 60 million Budget Support payment; and, finally, about the formal guarantees from the Commission for the Parliament to visit EU-funded projects.

– having regard to the Agreement between the European Parliament and the Commission of 3 June 2008 on procedures for implementing Council Decision 1999/468/EC laying down the procedures for the exercise of implementing powers conferred on the Commission, as amended by Decision 2006/512/EC,

In its resolution, the Parliament reinstated the five previous questions (oral questions) which were discussed with Commissioners Reynders and Johansson at the 12 March plenary, expanded the scope of three of them and added two new ones. The Parliament requested to receive clarification at the High-Level Geopolitical Dialogue with the Commission, held on 9 April, as well as in writing, which is the object of this reply.

– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (Financial Regulation),

The questions are raised in the context of the EU - Tunisia MoU on a comprehensive and global partnership, which was signed on 16 July 2023. The adoption of this budget support programme is one of the key operational follow-up actions of the MoU.

– having regard to the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Tunisia, of the other part,

Response to the requests and overview of the action taken, or intended to be taken, by the Commission:

– having regard to its previous resolutions on Tunisia, in particular that of 16 March 2023 on recent attacks in Tunisia against freedom of expression and association, and against trade unions, in particular the case of journalist Noureddine Boutar,

On paragraphs 1, 2 and 4:

– having regard to the press statement by Commission President von der Leyen with Italian Prime Minister Meloni, Dutch Prime Minister Rutte and Tunisian President Saied of 11 June 2023,

The programme is part of the EU engagement to continued support to Tunisia’s macro-economic stability and reforms, in line with the MoU pillar 1. The time factor – namely providing support to Tunisia still during the Tunisian budget year 2023 – was a crucial parameter to opt for an urgency procedure and have the financing decision adopted still in 2023.

– having regard to the Memorandum of Understanding of 16 July 2023 on a strategic and global partnership between the EU and Tunisia,

In addition to the 4 general conditions always applied to budget support, the Commission negotiated 3 additional specific conditions to ensure that the programme would be conducive to progress on macro-economic stability, in line with the MoU. The negotiations of the programme ended on 30 November 2023. Using the urgency procedure permitted to conclude the comitology procedure within 15 days (5-20 December 2023) instead of early February under the standard procedure. A standard adoption procedure would have allowed the adoption of the file only on 12 February 2024.

– having regard to the Commission Implementing Decision of 20 December 2023 on financing of the special measure in favour of Tunisia for 2023 (C(2023)9184), and to the accompanying action document on the support programme for macroeconomic reforms in Tunisia,

The Commission ensured the usual consultation with the Member States at the NDICI committee meeting on 12 December 2023. The Parliament received the information on the individual measure before its adoption (dated 20 December 2023), as indicated in the procedure (whether “normal” or urgent): the Commission’s Secretariat General transmitted the Action Document of the programme to the Parliament via the comitology register on 13 December 2023, as well as, on 18 December 2023, the result of the NDICI committee votes. The Commission did not receive feedback from the Parliament at that time.

– having regard to Rules 136(5) and 132(2) of its Rules of Procedure,

In addition, several exchanges between the Parliament and the Commission on the MoU took place, with AFET but also with the Committee on Development (DEVE), the Sub-Committee on Human rights (DROI) and the Committee on Civil Liberties, Justice and Home Affairs (LIBE), between June and November 2023, and in plenary several times between September and November 2023. Commissioner Olivér Várhelyi and Commissioner Ylva Johannson, Director General from the Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR), Gert-Jan Koopman, the EU Ambassador to Tunisia, Marcus Cornaro, intervened at the Parliament on the MoU. The EUR 150 million programme was mentioned and/ or discussed in most of these occasions.

– having regard to the motion for a resolution of the Committee on Foreign Affairs and the Committee on Development,

It should be noted that in the current NDICI procedures (see the Financial Regulation and NDICI-GE Regulation, both voted by the European Parliament), the Parliament is not involved as a legal stakeholder when adopting financing decisions, regardless of the opted aid modality (budget support or other). It is nevertheless informed beforehand according to the procedure on implementing acts.

A. whereas Article 21 TEU states that ‘the Union’s action on the international scene shall be guided by the principles which have inspired its own creation, development and enlargement, and which it seeks to advance in the wider world: democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, the principles of equality and solidarity, and respect for the principles of the United Nations Charter and international law’;

Finally, regarding the Financing Agreement, the Commission shared it on 12 February 2024 with the Parliament.

B. whereas Article 2 of the EU-Tunisia Euro-Mediterranean Agreement states that ‘[r]elations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect for human rights and democratic principles which guide their domestic and international policies and constitute an essential element of the Agreement’;

On paragraphs 6 and 8:

C. whereas Article 29 of the NDICI-Global Europe Regulation excludes actions that may result in the violation of human rights in partner countries; whereas Article 25(5) of the Regulation expects the Commission to carry out ex ante human rights impact assessments proportionate to the objectives and extent of the envisaged actions and measures; whereas Article 3(4) of the Regulation states that ‘[a]t least 93 % of the expenditure under the Instrument shall fulfil the criteria for ODA [Official Development Assistance], [...] thus contributing to ODA collective commitments’;

The programme is framed as a State and Resilience Building Contract (SRBC), a type of Budget Support programme used in countries in situation of crisis or transition.

D. whereas recital 40 of the NDICI-Global Europe Regulation states that, ‘[a]s the respect for democracy, human rights and the rule of law is essential for sound financial management and effective Union funding as referred to in the Financial Regulation, assistance could be suspended in the event of degradation in democracy, human rights or the rule of law in third countries’;

Adherence to the fundamental values remains an underlining condition for this kind of contract and is assessed and taken into account as part of the risk management framework (political risk category), as indicated in the budget support guidelines. That assessment also includes the identification of mitigation measures for follow-up in the context of the ongoing political dialogue.

E. whereas under President Kais Saied, Tunisia has experienced an authoritarian reversal and an alarming backslide on democracy, human rights and the rule of law; whereas over the last year, President Kais Saied has had opposition politicians, judges, media workers and civil society activists arbitrarily arrested and detained;

The decision of the Commission on the use of Budget Support as an implementation modality is taken on a case-by-case basis, taking into consideration the advantages of remaining engaged in the country, the EU’s reputational risk, the EU’s leverage to spur reforms, and the political and economic risks linked to a non-intervention.

F. whereas the Commission adopted the special measure using an urgent written procedure;

In the case of Tunisia, the Commission has followed a proportional and gradual approach on Budget Support since 2021, in line with the EU budget support guidelines. In 2021, the Commission committed to a new budget support programme to accompany Tunisia on its post-COVID-19 economic recovery. In 2022, no new budget support was committed, while payments of ongoing sectoral programmes were executed in line with achieved sectoral targets.

G. whereas six months earlier, in the Commission’s press statement of 11 June 2023, budget support in the amount of EUR 150 million to Tunisia was announced; whereas this budget support was announced before the Memorandum of Understanding between the EU and Tunisia was signed;

The respect and protection of human rights and fundamental freedoms are at the core of the relations between the EU and Tunisia, as per Article 2 of the EU-Tunisia Association Agreement, and the Commission maintains a regular political dialogue with the Government, including on fundamental values. Fundamental values are also supported through targeted EU financial assistance, which is substantial with an ongoing portfolio of programmes worth EUR 62 million to support civil society organisations.

H. whereas no informal contact took place between the Commission and Parliament ahead of the adoption of the special measure under an urgent written procedure, as stipulated in paragraph 12 of the Agreement between Parliament and the Commission of 3 June 2008;

Paragraphs 5 and 7:

I. whereas Article 27(4) of the NDICI-Global Europe Regulation states that, ‘[w]hen providing budget support in accordance with Article 236 of the Financial Regulation, the Commission shall clearly define and monitor criteria for budget support conditionality, including progress in reforms and transparency, and shall support the development of parliamentary control, national audit capacities and increased transparency and public access to information’;

The mutually-agreed conditions of the Financing Agreement of the programme consist in: 1) progress on the 4 usual general conditions of budget support (implementation of the relevant public policy; macro-economic policy oriented towards stability; good Public Financial Management (PFM); transparency and control of the Budget); and 2) fulfilment of 3 additional specific conditions: i) the publication of the 2024 Budget Law and its annexes, ii) the adoption of the PFM Action Plan by the Council of Ministers, and iii) the proposal by Tunisia of a date to hold a macro-economic discussion.

J. whereas Article 218 TFEU establishes the procedure to be used to negotiate and conclude agreements between the EU and third countries; whereas this procedure allows for appropriate procedural safeguards, as well as parliamentary and judicial scrutiny, thereby increasing accountability and democratic legitimacy;

The assessment of the conditions of the Financing Agreement was carried out in- depth, in line with the budget support guidelines (disbursement request by the Government of Tunisia, analysis by the EU Delegation, technical review by all relevant Commission services and EEAS, positive assessment and conclusions by the services, authorisation of payment).

K. whereas a delegation from the Committee on Foreign Affairs was denied entry to Tunisia on 13 September 2023, thus limiting Parliament’s ability to exercise its powers of scrutiny;

Paragraphs 3 and 9:

L. whereas on 26 September 2023, the Tunisian authorities unilaterally postponed a Commission visit, just days before it was supposed to take place;

The MoU is a non-binding instrument and refers to political commitments.

M. whereas in October 2023, the Tunisian President rejected and returned EUR 60 million in budget support from the EU;

A single tranche approach was considered the most appropriate option, benefiting Tunisia’s 2023 budget year, subject to 3 additional specific conditions considered as key steps to incentivise Tunisia towards reforms, economic stability and transparency, also in line with the MoU’s objective to contribute to Tunisia’s macro-economic stability.

N. whereas it is in the EU’s essential interest to continue to cooperate with Tunisia in order to ensure macroeconomic stability, the rule of law and human rights in the country;

Paragraph 10:

1. Contests the need for an urgent written procedure for the special measure in favour of Tunisia, as the Commission’s initial announcement of the EUR 150 million in budget support was made as early as 11 June 2023, leaving sufficient time to use the normal procedure; considers that the timing of the launch of this urgent written procedure demonstrates a lack of respect for parliamentary scrutiny and the comitology procedure;

The action contributed to support Tunisia in improving business and investment climate in 3 ways. First, general budget support conditions request a credible and relevant policy in this sector. Second, the additional conditions requested a published budget and its annexes, and a new PFM strategy, both welcomed by international partners as pillars of a new positive framework to investment and business-based growth. Third, the EU and Tunisia held, in February 2024, in-depth discussions on development, fiscal, budgetary, and monetary policy priorities, that have clearly showed recent reform progress and a positive trend.

2. Calls on the Commission to provide a detailed, fact-based explanation in the context of the next upcoming high-level geopolitical dialogue of why no informal contact took place between the Commission and Parliament ahead of the adoption of the special measure under an urgent written procedure, as stipulated in paragraph 12 of the Agreement between Parliament and the Commission of 3 June 2008; expects therefore that Tunisia will be selected as a priority country during the next high-level geopolitical dialogue;

Furthermore, the Government has adopted its 2023-2025 development plan and has worked on implementing its Business Climate strategy, which was adopted in January 2023. As of mid-February 2024, it had implemented 46 out of 189 of its actions, including financial inclusion in Small and Medium-size Enterprises (SMEs), incentive for savings, investment promotion, while other actions will be implemented once the Parliament approves the Code de Changes, which was adopted by the Council of Ministers in mid-March 2024. The Government has also been working on a new investment law. Finally, the Commission keeps engaging with Tunisia to present further progress at the EU-Tunisia Business Conference in 2024.

3. Considers that the political commitment made in the Memorandum of Understanding to pay ‘in full’ the budgetary support for 2023 does not constitute legal grounds for adopting this measure either as a special measure under Article 23(4) of the NDICI-Global Europe Regulation or under an urgent written procedure;

Paragraph 11:

4. Regrets that the Commission did not proactively make available to Parliament the relevant financing agreement with Tunisia, setting out particular conditions and requirements, in accordance with Articles 112(4) and 236 of the Financial Regulation;

On 10 October 2023, Tunisia returned a payment of EUR 60 million. This was the only budget support payment made in 2023. This amount was part of an ongoing budget support programme adopted in 2021, focused on the economic recovery from COVID-19. This payment was not linked to the MoU.

5. Requests a detailed explanation of how terms such as ‘satisfactory progress’, which is used in section 4.3.2 of the Commission’s special measure action document, which details the criteria for the disbursement of budget support, constitute ‘clearly defined criteria for budget support conditionality’, as stipulated by Article 27(4) of the NDICI-Global Europe Regulation;

Paragraph 12:

6. Expresses doubt that the respect for fundamental principles in external action relating to democracy, human rights and the rule of law, as outlined in Article 21 TEU, various provisions of the NDICI-Global Europe Regulation and Article 2 of the EU-Tunisia Euro-Mediterranean Agreement, are met for this special measure, given the significant deterioration in fundamental rights that has already occurred in Tunisia since July 2021 and given the fact that a significant deterioration in fundamental values could lead the EU to suspend, reduce or cancel budget support to partner countries;

The Commission fully supports the Parliament’s role in line with Article 14 of the Treaty on the European Union. Cooperation with the Parliament is an important element of the EU cooperation with Tunisia.

7. Calls, therefore, on the Commission to provide, as a matter of urgency and before the end of the parliamentary term, further written details on how and when it will assess whether the conditions outlined in section 4.3.2 on the disbursement of budget support have been or will be met, and what objective criteria will be used to determine whether ‘satisfactory progress’ has been made in the implementation of the general conditions listed in section 4.3.2;

To conclude, this Budget Support was adopted in compliance with the Financial Regulation (FR), the NDICI-GE Regulation and the EU budget support guidelines. It ensured consultations of the relevant parties (Commission services/EEAS and Member States) and informed the Parliament formally, as well as informally.

8. Requests that the Commission clarify in writing how it assesses that Tunisia currently meets the requirement outlined in section 4.3.2(b) of the special measure action document relating to fundamental values;

The Commission stands ready to continue engaging with the Parliament. It is also available to answer any question on the MoU implementation.

9. Calls on the Commission to clarify why it chose to disburse the EUR 150 million in a single tranche, rather than permitting a gradual disbursement based on concrete milestones or steps achieved, as provided for in Article 236(2) of the Financial Regulation, forestalling the option to suspend further disbursements should a clear erosion of fundamental values be observed;

10. Calls on the Commission to explain how the special measure will contribute to improving the business and investment climate in the light of the deterioration of the rule of law in Tunisia since July 2021, which is a roadblock to economic development;

11. Calls on the Commission to clarify the reasons why the Tunisian authorities rejected EUR 60 million in budget support disbursed under the COVID facility in October 2023, and on what grounds the Commission believes that the Tunisian authorities are willing to accept the budget support provided for in this special measure;

12. Calls on the Commission to clarify what guarantees it has received from the Tunisian authorities since September 2023 that Parliament will be allowed to visit EU-funded project sites in Tunisia and thus exercise its rights of oversight and scrutiny, in accordance with Article 14 TEU;

13. Requests that the Commission clarify the situation, by providing a pertinent and comprehensive reply to Parliament’s question for oral answer and this accompanying resolution;

14. Instructs its President to forward this resolution to the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the Council.