EU Presidency Statement - Improving the financial situation of the United Nations

Mr. Chairman,

I have the honour to speak on behalf of the European Union. The Candidate Countries Bulgaria, Romania, Turkey and Croatia , the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina and the Former Yugoslav Republic of Macedonia, and the EFTA countries Iceland and Norway, members of the European Economic Area, align themselves with this declaration.

I would like to thank USG Catherine Bertini for her presentation on 21 October on the financial situation. As the largest contributors that together account for some 37 % of the UN budget, the EU attaches enormous importance to the financial viability and effectiveness of this Organisation and to our responsibility to providing the UN with the appropriate resources. We do not take this responsibility lightly.

In general, the EU welcomes the modest positive trend outlined by Ms Bertini with regard to the regular budget and peacekeeping cash balance. However, we are concerned by the fact that the number of member states that have paid their regular budget assessments in full has declined from 131 in 2003 to the present number of 111. The EU is also concerned about the rise in outstanding assessed contributions to the regular budget from USD 690 million last year to USD 725 million in 2004. As pressure on the budget level rises, the ability of the UN to scrape by from month to month is decreasing. We expect the UN to deliver programmes according to mandates we have set. The UN has the right to expect us, the Member States, to provide the resources we have approved, in full, on time and without condition. If we do not, we are endangering the credibility and effectiveness of the system we are pledged to support.

Mr. Chairman,

Although we recognise the slight decrease in unpaid assessments for the International Tribunals, the EU remains alarmed by the financial situation of the Tribunals. Some 113 member states have not or not fully paid their dues and 13 member states have not contributed to the tribunals since their inception.

We recall our statement on this issue on 12 May last. The EU remains committed to the provision of international justice, which is a key priority of the UN. By not paying, member states jeopardise the functioning and credibility of the international justice system. We call upon those member states that have approved the budgets of both tribunals, yet delay payment or do not pay at all, to meet their obligations in full on time and without conditions.

Mr. Chairman,

Turning to Peacekeeping, the EU recognises the sharp increase in assessments to over USD 4 billion in 2004. So do our Ministries of Finance. Yet in spite of the heavy financial burden, we believe that peacekeeping is a function of the UN that has proven its worth. The restoration of peace and stability to a conflict-torn region should not be put at risk because of lack of timely and adequate financing. Notwithstanding the slight increase in cash in hand, we cannot but be disturbed by the increase in outstanding assessments from USD 1 billion by the end of 2003 to USD 2,5 billion as of 15 October. Although we recognise that there are some nuances to this picture such as the increase in the number of peacekeeping operations and the fact that over USD 800 million of assessments still are within the 30day due period, the EU calls upon those member states that owe large amounts to take steps to remedy the situation.

Mr. Chairman,

Ms Bertini has once again drawn our attention to the accounts of closed operations. The EU takes note of the amounts available to member states and recognises the need to take a decision on the return of USD 94 million to member states that is still pending. However, we also acknowledge the need to address the negative effects of continuing cash shortfalls caused by the non- or late payment of assessments by member states.

Finally, Mr. Chairman,

The EU believes that our Organisation can only perform the ever increasing and challenging tasks when member states accept their responsibility to pay their contributions in full on time and without conditions. The price of UN success may be high. But the price of failure is even higher.

Thank you, Mr. Chairman.

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