In this Issue

An EU Blueprint for Climate Success in Cancún

EU Approves a Twelve-Point Action Plan in Support of the MDGs

EURAXESS: A Network for European Researchers in India

Supporting Schools in Jammu & Kashmir

Cooperation on Economic and Financial Matters to be deepened

A Public Conference Promotes Lively Discussion on Relations between Europe and Asia

The EU and India Share Information on Public Procurement

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vol 9no 9Jun.- Jul. 2010

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The EU High Representative’s First Visit to India: a New Impetus For EU-India RelationsMrs. Catherine Ashton, the EU’s High Representative

for Foreign Affairs and Security Policy and Vice President of the Commission (HR/VP) visited New Delhi from 21-24 June. Mrs. Ashton’s mandate is a very broad one including the EU’s foreign and defence policy as well as some aspects of home affairs, making her, de facto, the EU’s Foreign Minister with an extended portfolio. Her aim in coming to India within a few months of her appointment was to take the EU-India Strategic Partnership to a more ambitious level with the inclusion of security and defence cooperation. Mrs. Ashton was accompanied by Gilles de Kerchove, the EU Counter-terrorism Coordinator, and General Ton Van Osch, Head of EU Military Staff.

Mrs. Ashton participated in the EU-India Ministerial Meeting with External Affairs Minister S.M. Krishna. She also held bilateral meetings with Prime Minister Manmohan Singh and different members of the Government of India, including Home Minister Chidambaram, Minister of Overseas Indian Affairs Vayalar Ravi, and National Security Adviser Shiv Shankar Menon. She also gave a public lecture to a full audience at the India International Centre on the growing international role of the European Union.

The visit was an opportunity to explain how the Lisbon Treaty has provided the EU with greater coherence and capabilities, and has mandated the creation of a diplomatic corps called the European External Action Service. It has thus transformed the EU into a full-fledged political actor in response to current global challenges. Mrs. Ashton also emphasised that the EU is complementing bilateral relationships between EU Member States and India by streamlining cooperation and adding value. Noting that the EU and India are both committed to universal values, she underlined that they have common responsibilities in shaping the global agenda and that further cooperation is essential to meet them. This would include more cooperation on regional issues, including discussions on Afghanistan, Pakistan and Sri Lanka.

Mrs. Ashton made a number of concrete proposals to enhance cooperation with India, including for tackling of piracy in the Indian Ocean, counter-terrorism operations, and between the European Police Force (EuroPol) and India. On anti-piracy operations, the EU Naval Force and India already have a working relationship to facilitate the programming of patrols and escorts. However, Mrs. Ashton

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EU-India Cooperation

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proposed that India should play a greater role, including being a part of the rotating command. Meanwhile, the EU could share its experiences in counter-piracy operations based on its ability to provide a comprehensive response to the threat of piracy, from military arrests to the subsequent legal prosecution. Mrs. Ashton suggested that Indian experts in counter-terrorism could visit the new EU “fusion centres”, which put together different strands of intelligence.

In addition to these new areas, Mrs. Ashton insisted on well-established areas of cooperation as they constitute a strong pillar of the relationship. She stressed the importance of finding a post-2012 agreement to fight climate change and of working together on the development of clean technologies and renewable energy. Trade remains the cornerstone of the relationship, especially given that the Free Trade Agreement between India and the EU is in its final stage of negotiations.

During her three-day stay, Mrs. Ashton visited a workshop featuring patachitra, a traditional form of painting, and

a performance by Baul folk singers who are inspired by mystical traditions – both from the state of West Bengal. This workshop was part of an EU-supported project. Titled Ethno-magic Going Global, the two-year project aims to develop art and culture based creative industry benefiting poor and marginalised rural and tribal communities. The folk artists will own and manage rural micro enterprises and resource centres offering cultural products and services including heritage tourism services. The direct beneficiaries of the action are 3200 folk artists living in 150 villages in six districts of West Bengal. These folk artists have formed 233 self help groups (SHGs) as part of ongoing interventions to revive art forms as a means of livelihood.

On leaving this country, Mrs. Ashton left no doubt that the EU considers India a major strategic partner. As the EU transforms itself into an increasingly coherent and effective political actor to live up to the expectations of the international community, there will be great opportunities for collaboration which both the EU and India seem willing to grasp.

Mrs. Ashton visiting a patachitra workshop in New Delhi.

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Climate Change

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Reaching a strong international climate change agreement remains a top priority for the European Union. This

was confirmed in July 2010 at the meeting of European Environment Ministers in the Belgian city of Ghent. Globally, the past decade has been the warmest on record, and recent data shows that across the world, January to May of this year were on average the warmest first five months of any year since records began in 1880. Last week, an official Dutch report cleared the Intergovernmental Panel on Climate Change (IPCC) of any errors that would undermine the main conclusions in the 2007 report on possible future regional impacts of climate change. Climate change will not go away, no matter what a small minority of sceptics want us to believe.

At last December’s Copenhagen climate conference, the majority of countries recognised that global warming needs to be held below 2°C in order to prevent the most severe and potentially catastrophic impacts of climate change. This will require a coordinated international effort, in the form of a strong and legally binding global climate framework. The Copenhagen conference made some progress in this direction. The non-binding Copenhagen Accord has, for instance, led to all major economies setting out pledges to reduce their greenhouse gas emissions or take action on them. Furthermore, the Accord includes pledges from the industrialised world to provide nearly US$ 30 billion in funding over the next three years to help particularly

the poorest and most vulnerable developing nations make a ‘fast start’ in tackling greenhouse gas emissions and adapting to climate change. Almost a third of this funding will come from the EU alone, and we are on track to deliver this.

The EU takes actionIn 2007, the European Union gave itself a head start in developing the global low-carbon economy of the future - and the growth and jobs that will go with it - by unilaterally committing to cut our greenhouse gas emissions to 20% below 1990 levels by 2020. The EU is ready to scale up our reduction to 30% if other major economies do their fair share too. This offer remains very much on the table. And for the long term we have set ourselves the goal of cutting our emissions, together with other industrialised countries, to 80-95% below 1990 levels by 2050.

This year’s United Nations climate conference, taking place in December in the Mexican city of Cancún, must keep the unprecedented momentum created up to Copenhagen. Europe is ready for ambitious decisions in Cancún. We must build on the Copenhagen Accord, reflect the interests and priorities of the different parties and provide a solid basis for reaching a global treaty.

Based on the progress made in the ongoing UN negotiations, a package of decisions could include areas like technology

European Commissioner Connie Hedegaard

Globally, the past decade has been the warmest on record.

An EU Blueprint for Climate Success in CancúnBy Connie Hedegaard European Commissioner for Climate Action

EU Action on Millennium Development Goals

cooperation; a framework for adaptation to climate change; a global scheme for reducing emissions from tropical deforestation; new carbon mechanism; and capacity building in the developing countries. The latter is very much related to another important deliverable, namely transparency in how we measure, report and verify our efforts. The Copenhagen Accord already addressed this issue, but it needs to be further elaborated for industrialised as well as developing countries. These concrete projects can be financed from the ‘fast-start’ funding pledged in Copenhagen.

As we have repeatedly made clear, the EU’s preference is that a legally binding global climate framework should take the form of a single new treaty. We are nevertheless open to accepting a second commitment period under the Kyoto Protocol provided that other major emitters commit to take on their fair share of a global emissions effort as part of the wider agreement and that weaknesses in the

Protocol which currently undermine its environmental integrity are fixed.

A second commitment period under Kyoto on its own, and without its weaknesses being rectified, would give absolutely no guarantee of keeping global warming below 2°C. Kyoto’s exclusive focus on industrialised countries, and the absence of the US from them, means that the Protocol obliges countries accounting for only around 30% of global emissions today. Yet, the fact is that the growth in global emissions is being driven more and more by the major emerging economies, as underlined by the recent Dutch data showing that cuts in industrialised world emissions last year were completely cancelled out by emissions growth in the fast-growing developing countries.

I remain convinced that Cancún can deliver an ambitious outcome. The climate needs it. The EU is prepared. I hope others are too.

In September, a UN conference of the world’s leaders will meet in New York to take stock of progress in the achievement of the 8 international development objectives they had

set in 2000. These Millennium Development Goals (or MDGs) relate to the eradication of poverty, the universalisation of primary education, the elimination of gender disparities, the reduction of maternal and child mortality, the control of communicable diseases including HIV and malaria, the establishment of a sustainable pattern of development and the development of a global partnership for development.

In the ten years that have elapsed, progress has been uneven across objectives and across countries. In the run-up to the conference, the European Union (including its Member States), which accounts for 56% of all international development assistance, has announced a 12-point Action Plan to address shortfalls in the achievement of the MDGs.

• Itwill increase its financial commitment to development assistance from 0.42%of Gross National Income (GNI) (€49 bn.) at present to 0.7% by 2015 on the basis of verifiable annual action plans. Recognising that around 1.4 billion people still live in extreme poverty, it will also encourage other donors, including emerging economies, to raise their levels of support.

• Toimprovetheimpactofexpenditures,itwillbringtogethertheprogrammingcyclesof the EU and its Member States and formulate multi-annual programmes based on common country strategy papers. Alongside it will move towards a common approach towards the monitoring of implementation.

EU Approves a Twelve-Point Action Plan in Support of the MDGs

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Growth in global emissions is being driven more and more by the major emerging economies

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EU Action on Millennium Development Goals

• Fragilestatesandcountrieswiththepoorestdevelopmentindicators will receive special attention, while maintaining balance between responding to needs and rewarding performance.

• Education and health sector funding will go towardsthose countries with greatest needs and sustainable policies, while food security programmes will focus on ecological sustainability and small holder farming, with contributions to productivity being encouraged in research projects.

• Developingcountrieswillbeencouragedtofocusontheachievement of MDG targets in their own national plans; and European funding will continue to support country-led initiatives in which partners have the maximum commitment to governance. Improved statistical systems and data will be crucial in monitoring progress on the MDGs.

• The EU has also put into place systems to monitorthe development impact of its non-aid external policies, particularly trade and finance, climate change, food security, migration, and security. Achieving policy coherence for development has been one of the major objectives of institutional reform under the Lisbon Treaty.

• It will also support internal resource mobilisation fordevelopment through support to tax reforms in partner countries using, where appropriate, tax information exchange agreements to support the fight against tax evasion.

• The EU will continue to support regional integrationinitiatives and development friendly trade measures such as duty-free access to Everything but Arms from the Least Developed Countries. While pushing strongly for the conclusion of the Doha Development Agenda under the WTO, it will take development needs into account in promoting bilateral agreements such as Economic Partnership Agreements and FTAs with developing countries.

• The poorest andmost vulnerable countrieswill be thespecial focus of efforts to promote innovative financing mechanisms with significant revenue generation potential.

• The EU is committed to support developing countries

in adopting and implementing adequate adaptation and/or mitigation strategies. This is done through strengthening climate change considerations in the development policies, facilitating access of developing countries to low carbon and climate resilient technologies respectful of intellectual property rights, together with strengthening their knowledge base on climate change and enhancing EU support to related research in and with developing countries. Specifically, it will provide € 2.4 billion fast-start funding annually for developing countries from 2010 to 2012, and ensure that those funds are programmed and disbursed in accordance with the aid effectiveness agenda.

• Forcountrieswithinternalsecurityissuesan‘EUActionPlan for Situations of Fragility and Conflict’ is being proposed with the objective of integrating development objectives into the implementation of peace and security operations.

• Finally the EUwill supportUN-system level reforms toimprove the co-ordination of development assistance as well as increases in the voting shares of developing and transitional countries in the World Bank and the IMF.

With these measures the European Union intends not only to step up its overall contribution to developing country assistance programmes, but also to make better use of its aid in co-ordination with other donors and in close collaboration with developing country partners.

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Education and health sector funding will go towards those countries with greatest needs and sustainable policies.

State Partnership Programme: Forest honey goes to market in Chhattisgarh

The MDGs figure prominently in the EU’s development assistance to India. Recognising that ‘structural reforms and social cohesion are needed to accelerate growth and substantially reduce poverty’, the EU has adopted

a two-pronged approach according to which it will

•assist India inmeeting theMDGsbyprovidingbudget support to the social sector (health/education), bypromoting best practice models in good governance, decentralised decision-making and development, including innovative methods for improved service delivery to address poverty, gender issues, institutional reforms and public sector management; and

•implementtheEU-IndiaPartnershipthroughanambitiousActionPlanwithaviewtosupportingIndia’spro-poor sector reform policies, promote dialogue in areas of mutual interest and enhance economic co-operation.

The EU has implemented the first part of this strategy through its contribution to some major national programmes in the social sectors such as the Sarva Shiksha Abhiyan to which it has provided €270 mn. (Rs.1620 crs. approximately) and the Sector Policy Support Programme for the Rural Health Mission to which it has committed €110 mn. The EU had earlier committed €150 mn. to the District Primary Education Programme (DPEP), and €240 mn. to the Department of Health and Family Welfare’s Sector Investment Programme.

A second level of the EU’s involvement in the MDGs has been at the state level with the two State Partnership Programmes in Rajasthan and Chhattisgarh. The partnership in Chhattisgarh (€80 mn.) targets several MDGs in poverty reduction, education, health and environment through its interventions in access, quality, and institutional capacity building at the school level; access to quality health services for poor and marginalised communities; and income generation through sustainable livelihoods initiatives in the development of non-wood forest produce for tribal, forest dwellers. The Rajasthan programme on the other hand addresses development issues through its focus on the state’s water sector reforms and its ground level implementation of integrated water resources management.

The third level of engagement is with non-government or civil society organisations which are often able to reach out to the most inaccessible areas and disadvantaged communities. The EU supports grant programmes for them in the education, health and environment sectors, to develop and deliver innovative solutions for the provision of basic services. More than 100 such projects represent around €150 mn. in EU financing alone. This does not include the programmes and projects supported by its Member States, many of whom have substantial commitments in India.

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The Millennium Development Goals in the EU’s assistance to India

EU Action on Millennium Development Goals

The MDGs figure prominently in the EU’s development assistance to India.

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EU-India Research Links

EURAXESS Links is a networking tool for European researchers, scientists and scholars abroad. It provides

information about research in Europe, European research policy, and opportunities for research funding, international collaboration and trans-national mobility. Euraxess allows researchers abroad to stay connected amongst themselves and with their colleagues in Europe, and contributes to the improvement of Europe’s position in the global competition for talent. It offers researchers information on sources of grants, career opportunities, conferences, and training courses in Europe, organising meetings and events involving members and networking features in the website (e.g. a bulletin board where members can post information; chat rooms, etc.). Such networks have also been set up in the USA in 2006, in Japan in 2008 and in China in 2009 where they are running successfully. Now Euraxess Links India will connect the EU research community with its Indian counterparts.

As one of the largest and fastest growing markets in the world, India offers significant opportunities for EU enterprises and S&T researchers and institutions. As an emerging leader in information and communication technology (ICT) and biotechnology, it has a growing number of science parks, international companies and universities. An increased flow of European researchers to India and increased collaboration with Indian research institutions is a likely outcome.

Keeping this in mind, a survey was launched by the Delegation of the European Union to determine if the European research community is interested in the establishment of such a network for India. The focus of the study was not only to

identify information, services and tools of most use, but also to develop an initial database of EU researchers with links to India, generate publicity for EURAXESS Links India among research communities in India and Europe, and provide insights into the awareness of EU researchers on European policy and instruments.

Survey results466 researchers - 67% of them based in Europe, and 50% of them working at a senior research level - responded to the survey and their answer was an emphatic ‘yes’ to the setting up of this network. Respondents were most interested in information and services that will enable them to develop their professional network of contacts in India, look for sources to fund their research and seek assistance in developing their careers.

Presenting the survey findings in New Delhi, Mrs. Danièle Smadja, Ambassador of the European Union, remarked that the European Union persistently advocates the benefits of “brain circulation”, both within Europe and at a global level, rather than concentrating on the more restrictive concepts of “brain drain” and “brain gain”. She said that such a brain circulation could not ignore India which is one of the emerging countries in the world, including from the research and innovation point of view, and hoped that there would be more European researchers coming to India.

The next steps in the process of launching the network are recruitment of a network manager and the launch of the network itself, which is planned before the end of the year.

EURAXESS: A Network for European Researchers in India

For more information on EURAXESS Links: http://ec.europa.eu/euraxess/For more information on EURAXESS Links India: http://www.delind.ec.europa.eu/kp-st-euraxess.asp?links=st-link9

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As one of the largest and fastest growing markets in the world, India offers significant opportunities for EU enterprises and S&T researchers and institutions.

EURAXESS: Some Quotes from Survey Respondents“The different research environments are interesting. Both sides would benefit from stronger cooperation. Testing new technology could definitely be an area of cooperation.”“A EURAXESS Links India network would be useful as there are no channels for communication in research at the moment.”“The network should provide a platform to make Europe-India research and researchers in this field more visible.”“True mutual benefit - for Europe, access to tremendously motivated and capable researchers; and for India access to state-of-the-art methods and facilities; plus a personal win-win situation regarding the cultural aspect of collaborations.”“There is tremendous opportunity for both sides. India needs the technology and Europe needs the talent.”

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EU Education Project

Best practices from other states are being used to train and motivate state government officials.

Karpokhar, is a remote and quiet village in the Kargil district of Jammu and Kashmir. Surrounded by

mountains on one side and the Itchu River on the other, it is a breathtaking land. However, life in Karpokhar can be very difficult. It suffers from extreme weather conditions and limited access to food, education and health

facilities. Almost 95% of the children in Karpokhar are first generation learners. The village has a government middle school which has only been recently upgraded from primary. Thousands of schools like this one struggle to impart a meaningful education to children who have to walk long distances to school.

Save the Children with support from the European Union is working with 400 communities, local governments and 6 local partners, across 11 blocks in 8 districts of the state of Jammu and Kashmir to improve the quality of education in government schools. Management and technical support are being provided by Save the Children. Field work is being done by the Jammu & Kashmir Yateem Trust, Jammu & Kashmir Yateem Foundation, J K Womens’ Welfare Society, Modern Cultural Club, Leh Nutrition Project and Kargil Development Project. These agencies are already well known to local communities.

Working with the state governmentOne of the key objectives of the project is to make the

government accountable for universal access to quality education through community-based monitoring. The focus of attention is 3,000 out-of-school and 24,000 in-school children, most of them from poor and marginalised communities. Save the Children has signed a Memorandum of Understanding with the state government to be able to

work with its school system. The project has carried out a survey of the present level of learning and identified problems specific to the situation of each community. It is developing training modules for trainers and teachers in collaboration with state and district level training institutes, and conducting training programmes to make teaching more effective. Simultaneously, it is working to involve parents in monitoring progress in the enrolment of out-of-school children and the quality of teaching in the schools and classrooms they go to, through their active participation in Village Education Committees (VECs). Best practices from other states are being used to train and motivate state government officials. Data from the project is being fed into government information systems to ensure the targeted continuation of activities after the European Union- funded project ends in 2012.

Despite the many challenges of terrain, temperature and the political situation in J&K, the project has made a bright beginning.

Supporting Schools in Jammu & Kashmir

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Macroeconomic Dialogue

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The EU and India held their fourth annual macroeconomic and financial services dialogue in Brussels on 8-9 July

in the wake of the Toronto summit of the G20 and before a crucial summit of G20 Leaders in Seoul in the autumn. The Indian delegation was led by Ashok Chawla, Finance Secretary, while the EU delegation was led by Marco Buti,

B A C K G R o U N DThe macroeconomic dialogue aims at fostering a better understanding of major economic developments and challenges on each side.The first two editions took place in New Delhi in 2007 and Brussels in 2008 against the background of the growing role of India and the EU on the global economic scene and the deepening of their bilateral economic ties.

The third edition in 2009 in New Delhi took place in a completely different context following the onset of the worst economic and financial crisis since the Great Depression. Beyond the direct effects it involved for each economy, the pace with which the crisis developed underlined the extent to which all economies have now become interrelated. The crisis also showed the increased need for and the increased value of policy coordination and responses to the crisis – which is now embedded into the G20 as a permanent forum and the main body to steer economic policies at global level. Both India and the EU agree that the G20 was instrumental in delivering a new system of global governance to ensure strong and sustainable growth and achieve a stable financial architecture.

The raison d’être of the dialogue is therefore not only to provide an exchange of information on economic and financial developments in Europe and in India, but also to allow better coordination of economic policies.

Cooperation on Economic and Financial Matters to be Deepened

Director General for Economic and Financial Affairs and Jonathan Faull, Director General for Internal Market and Financial Services in the European Commission.

Financial services: a new priorityFor the first time, the dialogue included one full day of discussions on financial services and financial regulation and supervision, in addition to the more usual exchanges on macro-economic challenges and policies. This is a direct result of the role financial services played in the global crisis and the role that improved regulation and supervision can now play in finding the way out. This first discussion highlighted many common challenges in Europe and India and included discussions on banks, insurance and capital markets. Accounting standards and auditing were also identified as promising avenues of cooperation for the EU and India.

European Commissioner for Internal Market and Financial Services Michel Barnier hosted a working lunch where he showed great interest in the EU-India relationship – which he considered was important not only for economic reasons but also because of much deeper geo-political reasons. Commissioner Barnier also mentioned his willingness to visit India during the year to come.

Useful discussions took place on G20 after the Toronto ‘transition’ summit and prior to the Seoul summit. Each party provided a detailed account of its position and on each aspect of the G20 agenda and measures taken or planned in connection to it. The extent to which the G20 should be prescriptive led to a very useful exchange of views and experience.

The next edition of the macroeconomic and financial services dialogue will take place in 2011 in New Delhi. Given the importance of coordination on the issues discussed in this context, it was agreed to further cooperation at technical level on several issues in-between the annual meetings.

Commissioner Barnier mentioned his willingness to visit India during the year to come.

Michel Barnier, EU Commissioner for Internal Market and Financial Services

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Asia Europe Dialogue Since its inception in 1996, the Asia Europe Meeting,

or ASEM, is the main forum of discussion between the European Union and the countries of Asia. The 45 – and soon to be 48 – members of ASEM represent around 60% of the world’s population, over 60% of world trade, and half of global GDP. In the G20 grouping ASEM accounts for 12 members, making it one of the most important partnerships of recent times. Leaders of governments will meet in Brussels in October for the 8th summit under the Presidency of Belgium, with ‘Improving the Quality of Life’ as its theme. The summit will be accompanied by an Asia-Europe People’s Forum, a Parliamentary Partnership and a Business Forum to obtain non-governmental views on broadening and deepening relations between the two sides.

On the 12th and 13th of July 2010, the EU sponsored a public conference in Brussels to bring together expert opinion from think tanks, media and academic institutions to contribute to the ongoing dialogue. In his welcome remarks, Ambassador Jong Kyu Park of Korea suggested that the challenge for ASEM was to make a successful transition from what is mainly a dialogue forum to what should become a substantive partnership in keeping with its ambitious objectives.

In her keynote address, European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, Kristalina Georgieva said that “ there is no global issue - the financial crisis, climate change or the fight against extremism - that can be meaningfully discussed without Asia’s substantive participation. It is on these big global issues that the relevance of ASEM becomes most obvious.” “Much of what the EU is doing now, in terms of the enhanced engagement with Asia on security, democracy, the environment, trade, financial markets’ regulation, and development, has evolved with an input from ASEM”, she added.

Commissioner Georgieva remarked that although there are some reservation in Asia about the internal coherence of the EU, its economic decline, and possibly about its transatlantic relationship; it is also true that Europe is “a

model for those who want to go forward with reconciliation and regional integration”. Its principles of democracy and human rights strike a chord; its multilateralist approach to global issues is widely admired and its large and open single market considered extremely attractive.

She spoke of the common development agenda including but not restricted to the achievement of the Millennium Development Goals where Asia was emerging not just as a recipient of aid but also as an important donor; and of improving the level of preparedness for natural disasters such as tsunamis.

EU-ASEM: an agenda for progressThe Commissioner said that there were 5 ways in which the EU could strengthen its dialogue with Asia: first, through the provisions of the Lisbon Treaty which would allow “the joining up the political and security dimensions with trade, environmental, regulatory and development matters in a more operational way than is possible today;” second, by working directly with Asia on co-ordinating responses to the financial crisis; third, by deepening “ its transatlantic engagement on Asia”; fourth by keeping markets open in the face of protectionist pressures; and fifth by supporting people-to-people contacts at various levels.

Speakers from both sides presented a multiplicity of views over the next two days, inevitably comparing the widely admired European experience of integration, with the sometimes overlapping constructs coming up in Asia in response to historical circumstances. There was, however, a wide consensus that neither side – whether because of strong trade and investment links, or the intrinsically global nature of challenges like security or climate change - would be able to go it alone in the future.

In his concluding remarks the Belgian Deputy Prime Minister and Foreign Minister Steven Vanackere, reflected the optimism of the participants when he said that with the accession of Russia, Australia and New Zealand, Europe and Asia would be linked up, and henceforth face – in the words of Kwame Nkrumah - neither East nor West, but forward.

A Public Conference Promotes Lively Discussion on Relations between Europe and Asia

EU Commissioner Kristalina Georgieva delivering the keynote speech at the ASEM public conference in Brussels.

Europe is a model for those who want to go forward with reconciliation and regional integration.

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EU-India Trade

Senior officials from the European Commission visited India between 17 and 21 May 2010 to establish a

framework for discussions on public procurement rules in the EU and India. To this end, the team met central government departments such as the Directorate General of Supplies and Disposals, state agencies in Mumbai and Bangalore, and representatives of Indian industry.

Informal but intense exchanges revealed keen interest in regulatory practices on both sides and helped to dispel the view in some sections of the Indian trade policy community that the European public procurement market is not open to Indian companies. Economic analysis of public procurement policy in the EU has shown that additional competition delivers important savings in public spending.

The EU market for public procurement• TheEUpublicprocurementmarket isthelargest intheworld. Its size in 2007 was an estimated € 370 billion. The Government Procurement Agreement (GPA) of the WTO (which has been signed by approximately 40 countries and covers government contracts in excess of specified threshold limits varying by signatory country and sector) covered contracts between € 293 billion and €312 billion in 2007 (or 2.5% of the EU GDP).

• Outofthis,anestimated€ 11-12 billion was awarded to firms from other GPA parties- representing 3.2- 4% of the procurement market: almost the same range as the share of EU imports from the same countries in the EU GDP (5-6% ).

• The largest markets for foreign firms from the GPAParties have been Germany (€ 2.6 billion), and Italy, UK and Spain (all more than € 1 billion). In fact Germany, Denmark and Hungary awarded more than 10% of public contracts to firms from GPA countries.

• Amongthesectorsinwhichtheparticipationofforeignfirms were high were IT services (€ 3.6 billion, 10% of IT service contracts), telecommunication services (17% of telecom contracts) and even pharmaceuticals. (US firms have been quite successful in winning contracts in this area, although Israel has also been able to obtain some public contracts in the area of generic drugs).

• TheEUhasnopreferentialsystemforsmallandmediumenterprises (SMEs) but analysis conducted by the European Commission shows that in 2005 SMEs were awarded 65%

of all contracts subject to specified rules of procurement, which in turn represent 43% of the value of the whole EU procurement market.

Industry seemed upbeat about prospects for Indian businesses in the EU public procurement market, although some of them felt they were missing out on opportunities in European and other public procurement markets because India was not a party to the GPA. Some of them were frank in revealing that they needed to establish a subsidiary in the EU to be able to bid for contracts in the EU.

Avenues for cooperationIn their discussions with Indian partners the EU team found that:

• Among the Indian government and stakeholders therewas a general conviction that Indian public procurement rules were broadly compatible with the GPA.

The EU and India Share Information on Public Procurement

eu-InDIAuPDATe12

Published by Ambassador Danièle Smadja, Head of Delegation

Delegation of the European Union to India65 Golf Links, New Delhi 110 003; Telephone: +91 11 24629237, 43674367; Fax: 24629206

E-mail: delegation-india@ec.europa.eu; Website: www.delind.ec.europa.eu

eu - India Calendar of events

Date Particulars Place

September 2010 EU-India Development Co-operation Sub-Commission New Delhi

14-15 September 2010 EU Workshop on Groundwater Management New Delhi

14-17 September 2010 European Business and Technology Centre: Flagship Mission to India on Transport New Delhi

20 September 2010 Seminar on Financial Services: Relations between the EU and India. Mumbai Organised by the Embassy of Belgium

10-12 October 2010 EU-India Forum on Effective Multilateralism Brussels

21-23 October 2010 EU-India Seminar on In-service Teacher Education Orissa

25 October 2010 4th EU-India Environment Forum on Ship Dismantling New Delhi

26 October 2010 EU-India Joint Working Group on Environment New Delhi

27-29 October 2010 Visit to India of European Parliament delegation on Economic and Monetary Affairs New Delhi, Mumbai

1-4 November 2010 Visit to India of European Parliament Committee on Internal Market New Delhi, and Consumer Protection Mumbai, Bangalore

9-10 November 2010 India-EU Workshop on Water Technology, Research and Innovation Collaboration (WTRIC) New Delhi

10-12 November 2010 Conference on the EU and its Member States and India working together: New Delhi One challenge - coordinated responses

26-27 November 2010 Inaugural Conference EU-India Study Centre in Mumbai Mumbai

26 November 2010 EU-India Ministerial Science Conference Brussels

November 2010 EU Seminars on Decentralisation and Panchayati Raj Institutions New Delhi, Trivandrum

10 December 2010 EU-India Summit Brussels

EU-India Trade

• Model contracts in the area of public-privatepartnerships (PPPs) developed by the Planning Commission of India could be of possible interest to the EU for its soft law approach, particularly at a time when the EU itself is reflecting on legislating PPPs.

• Details about the Karnataka legislation on publicprocurement shows that the state has quite an advanced public procurement regime including on e-procurement.

• Thecentralgovernment iscontemplatingreservationof 20% of government purchases for small and medium enterprises since the share of SMEs in Indian public procurement contracts is as low as 8% according to some estimates.

It was agreed that tours to Brussels and some EU Member States could be organised in order to give Indian officials a first-hand experience of how European rules are implemented. Further, some workshops to promote the benefits of international procurement disciplines and practices - and describe the European experience - could also be held in India. Finally, there was a realisation on the European side that it was important to keep engaged with India on public procurement issues since the Indian government is a significant buyer of goods and services, and Indian companies are interested in accessing the EU public procurement market.