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 of Bulgaria, Romania and Turkey, the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Serbia and Montenegro and the EFTA countries Iceland and Norway members of the European Economic Area, align themselves with this statement.

I would like to thank USG Catherine Bertini for her presentation on 4 May on the UN financial situation.

The EU Member States pay in total 38% of all contributions to the UN Regular Budget, somewhat more with respect to peacekeeping operations. This is a serious responsibility and one that we do not take lightly.

The EU welcomes the more positive trend outlined by Ms Bertini with regard to the cash balance and the decrease in the amount of unpaid assessments. Nevertheless we remain concerned that UN finances continue to face considerable strain due to late payment and the still very high level of more than US$1.6 billion of unpaid assessments.

The EU welcomes the steps undertaken by the United States in particular to reduce their arrears and hopes that this trend will continue. The EU expects other member states with high arrears to do their best to reduce them.

To operate at maximum efficiency, the UN requires adequate funding and, what is more, predictable funding. It is we, the Member States, who have tasked the UN with additional mandates and have approved the appropriate budgets.

Peacekeeping operations in particular are a significant growth area. This is a core function of the United Nations and one that delivers enormous benefits. As long as there is a need for such operations, we would expect full support from all Member States for them.

It is true that this activity does not come without a heavy financial burden and, in particular, because of the urgent need for rapid start up of missions, delays in payment cannot be tolerated.

We note with concern that, although the overall cash balances for peacekeeping have improved somewhat since last year, some peacekeeping missions are facing bleak financial prospects. Of particular concern are UNMIK and MINURSO, where a high level of outstanding contributions from member states continues to cause serious cash-flow problems. A substantial number of Member States have still not met their financial obligations for these and other missions. The EU firmly believes that Member States should be prepared to honour their financial obligations promptly and urges all those in arrears to take urgent steps to remedy the situation.

The EU shares the alarm expressed by the Secretariat about the precarious financial situation of the International Tribunals. The provision of international justice is a key priority of the United Nations. While the budgets for the Tribunals remain high, they nevertheless have been approved by all Member States. It is therefore not acceptable that Member States refuse or delay payment to an extent that the very functioning of the tribunals is placed at risk. What kind of message does this send to those who are expecting justice? They deserve better of us than excuses and complaints. The option of cross-borrowing against closed peacekeeping mission accounts will be limited after the end of June. It is imperative therefore that payment of outstanding contributions to the Tribunals should be made urgently if we are not to see a collapse of the international justice system.

Ms Bertini has drawn attention to the extent of cross-borrowing from the accounts of closed peacekeeping missions. We should consider carefully what alternatives are open to us once this avenue of financing has been closed. Should we be considering seriously the consolidation of peacekeeping accounts? Should we be discussing institutionalising a system whereby outstanding assessments for peacekeeping operations are offset against debts to Troop Contributing Countries? Are there measures we could consider to encourage prompt payments or further penalties to discourage continued late payments? We are open to a discussion on any steps that could take us forward.

The EU is convinced that we cannot continue with the present cycle of arrears if the United Nations is to function at maximum capacity. We well understand the difficulties that some Member States experience through different payment cycles. Several in the EU have similar problems. But we would stress to those States, especially the main contributors, that the unprecedented demand for peacekeeping offers a timely opportunity to seriously consider adjusting payment dates in a way that offers greater financial security to the Secretariat.

Thank you, Mr. Chairman.

| Haut |