Summary: October 28, 2003: Statement on behalf of the European Union by H.E. Ambassador Aldo Mantovani, Deputy Permanent Representative of Italy to the United Nations. Fifth Committee - IMPROVING THE FINANCIAL SITUATION OF THE U.N. ITEM 123 (New York)
Mr. Chairman,
I have the honour to speak on behalf of the European Union. The acceding countries-Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia-as well as the associated countries-Bulgaria, Romania, and Turkey-and the EFTA countries belonging to the European Economic Area-Iceland, Liechtenstein, and Norway-have aligned themselves with this statement.
The European Union would like to thank the Under-Secretary General for Management, Ms. Catherine Bertini, for her clear and focused presentation of the financial situation of the U.N. on October 21. We are grateful for her frank assessment of the imbalances that the Organization is experiencing, and for the hard work that the Secretariat is carrying out to address them.
Mr. Chairman,
Looking at the financial situation of the UN we see light and shadow.
Beginning with the latter, we share in particular the concerns expressed by Ms. Bertini on the decreasing number of Countries that have paid their regular budget assessment in full. We have taken note that the unpaid regular budget assessments amount to almost 700 Million US $. This could lead to difficulties in cash on hand by year's end that could force the Secretariat to continue cross-borrowing from closed peacekeeping operations.
In this respect we are concerned that the amount available for cross-borrowing is rapidly decreasing and that shortfalls in the regular budget will no longer be met through closed operations accounts. We hope that the more optimistic scenario presented by the USG will materialize, with countries paying outstanding contributions before year's end, in particular taking into account the General Assembly's resolution 57/323 of last July. It is unfair on those Member States who pay promptly to have
to carry the burdens of those who do not in terms of foregone repayments from closed missions. We agree furthermore with the comments of the U-SG that there is little point in piling on further expense if Member States cannot or will not meet the current obligations imposed by regular budget assessments.
In this respect, we stress the importance of payment by all Member States of their arrears and assessed contributions to the U.N. The EU would also appreciate if the main contributors - could consider paying their budget assessments at the beginning of the upcoming new year, and the following ones, rather than at the end.
Turning to the International Tribunals, we agree with the U-SG that, in her words, "they are in a precarious financial situation". We are concerned that for the majority of 2003, the Tribunals cash flow has been, and will remain, negative. As with the regular budget, this has also led the Tribunals to cross-borrow from closed peacekeeping missions. In fact, they owe $41 million to that account. We are greatly concerned with the number of Member States that have not paid their contribution to
the Tribunals. We intend to speak further on this issue during our debate of items 131, 132.
As regards the Capital Master Plan, we note with concern that as of September 30, only 61 Member States have paid their assessed contributions, while 127 States had made no payment whatsoever.
Turning now to some positive notes of the USG's presentation, we are pleased that the level of unpaid peacekeeping assessments continues to reduce and now stands at $1.3 billion. Though still too high, it compares well with the $1.78 billion that was outstanding at this time last year. This improved situation has allowed amelioration of the debt owed to Member States for troops and equipment. This means that by the end of the year, the Secretariat will have met, and even gone beyond, the
Secretary General's goal of paying for one year's debt.
While the overall financial situation of the UN is slightly better than in 2002, it appears that we have not yet reached a safe haven, where the UN can carry on its many important tasks on a stable and predictable financial basis.
Thank you Mr. Chairman.
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