EU Presidency Statement - Sectoral Policy Questions

Mr. Chairman,

I have the honor to take the floor on behalf of the European Union. The Acceding Countries, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia and the Associated Countries Bulgaria, Romania and Turkey align themselves to this statement.

Economic and sustainable development requires first and foremost a favourable political context. Transparency, good governance, and accountability are without a doubt fundamental conditions for the implementation of a sound political environment. In this context, corruption, illegal practices and covert financial trafficking are major obstacles in the process of economic and social development. As agreed in the Monterrey consensus, preventing and combating corrupt practices and the transfer of funds of illicit origin and the restitution of such funds is a key element in every effective strategy for sustainable development and poverty eradication.

Corruption impoverishes national economies, undermines democratic institutions and the rule-of-law affecting the very basic political, social and economic structure of a country. The diversion of scarce resources by corrupt parties affects the government ability to provide basic services to its citizens and to encourage sustainable economic, social and political development. But even worse is that too often corruption has the greatest impact on the most vulnerable part of a country's population - the poor.

Mr. Chairman,

We believe that in an increasingly connected world, the battle against corruption has become more urgent than ever.

In this respect, the EU welcomes the entry into force of the United Nations Convention against Transnational Organized Crime on 29 September 2003. The Convention includes comprehensive measures for dealing with transnational organized crime, including offences related to corruption and money laundering, and requirements for international cooperation in the seizure and confiscation of any property or assets related to the offences covered by the Convention. It will certainly enhance our ability to combat corruption and the transfer of illicit funds.

The EU also welcomes the recent conclusion in Vienna of the negotiation of a Convention against Corruption, expressing its satisfaction on the outcomes reflected in the final text. The General Assembly is now called to adopt the Convention before the High-level Political Signing Conference that will be held in Merida (Mexico) from December 9 to December 11.

Mr. Chairman,

This draft convention, which represents an important advance in the international law, provides States parties with a strong and large range of provisions, which will strengthen the capabilities of States in combatting corrupt practices.

Mr Chairman,

These international legal instruments are essential since the increasing financial interdependence at the global level has created new opportunities for illegal financial practices often fuelled by funds originating from corrupt practices at national and international levels. The use of the international financial system for illicit purposes has become a major concern. The systems' high degree of openness and decentralization makes it vulnerable to criminal activities, including money laundering and the financing of terrorism, tax crimes and circumvention of both national and international regulation. The EU is concerned that, in some cases, corporate entities are expressly created for such illicit purposes.

In response to these challenges, international collaboration has been intensified through existing fora and organizations, such as the G8 finance Ministers, the OECD, the World Bank, the IMF and the Financial Action Task Force on money laundering.

Furthermore, the fight against corruption has to be brought to the attention of the UN pertinent bodies and placed in the broader context of a coherent and sustainable approach to development. In this context, the EU welcomes the work carried out by the United Nations Office on Drug and Crime (UNODOC) in particular that of the Global Programme against corruption. The Global Programme is a very important initiative aimed at elaborate strategies to fight corruption internationally through shared experience with international experts and practitioners. The work done by the Global Programme against corruption so far is very positive and has to be continued.

Mr Chairman,

We believe that the fight against corruption is yet another aspect of the ongoing effort for the promotion and consolidation of the very principles underling democratic institutions. A democratic culture, and in particular the political leaders' accountability to the ultimate sovereign power of the people, is the best safeguard against corruption.

Thank you Mr. Chairman.

| Haut |

• EU Presidency Statement - UN Convention against corruption (21/1/2002)