The European Union however recognises the international and local efforts being made in search of a solution to the political crisis and reaffirms its wish to support these efforts. It urges the Haitian government to translate the commitments made into concrete actions. The European Union also expresses its worries regarding the socio-economic situation in Haiti and reaffirms its wish to continue co-operation for the benefit of the Haitian people. The Council therefore decided to review the measures as follows: redirection of the remaining funds of the first 8th EDF tranche and provision of the second tranche under the 8th EDF for programmes that are of direct benefit to the Haitian people, to strengthen civil society and the private sector and to support democratisation, the strengthening of the rule of law and the electoral process. A decision on the gradual reactivation of the co-operation instruments affected would be taken on the basis of the advancement of the electoral process and in the light of the resumption of co-operation with the international financial institutions, the Union being ready to review its Decision if there are encouraging developments.

It is recalled that following the general elections in Haiti on 21 May and 9 July 2000, during which the observers' mission of the Organisation of American States noted various irregularities and frauds, the European Union decided on 2 August 2000 to invite the government of Haiti to enter into consultations under Article 96 of the Cotonou Agreement. The consultations were held in Brussels on 26 September 2000. With the Haitian authorities failing to take into account the concerns expressed by the European Union, the Council decided on 29 January 2001 to take appropriate measures with regard to co-operation with Haiti, in particular regarding the non-provision of the second tranche under the 8th EDF, suspension of direct budget aid and redirection of the remaining funds of the first 8th EDF tranche to projects of direct benefit to the Haitian people. A review of the situation by the Commission and the Council took place at the end of 2001. It recognised certain attempts being made although insufficient. The Council thus decided on 21 January 2002 to maintain the measures up to the end of 2002. The decision foresaw however a gradual reactivation of the co-operation instruments affected subject to the achievement of certain objectives as regards the electoral process.

A. HAVING REGARD TO the decision of the Council of the European Union of 31 January 2001 regarding appropriate measures under Article 96, paragraph 2, sub-section c, of the Cotonou Agreement, to impose sanctions on Haiti ;

B. RECALLING the withholding of the second tranche under the 8th EDF in the sum of 44.4 million Euro;

C. NOTING the decision of the Council of the European Union of 23 January 2002 to extend the above-mentioned appropriate measures until 31 December 2002;

D. TAKING ACCOUNT of the direct negative impact that the sanctions have had on the Haitian population which is becoming increasingly disadvantaged;

E. RECALLING ACP-EU resolutions 3170/01/fin. of the second session of the ACP-EU Joint Parliamentary Assembly on the lifting of the sanctions on Haiti, and of the 73rd session of the ACP Council of Ministers on the launching of political dialogue between Haiti and the European Union;

F. RECALLING also resolution 822 of 4 September 2002 of the Permanent Council of the Organisation of American States regarding support for the strengthening of democracy in Haiti;

HEREBY

1 Appeals to the Council of the European Union to work, with the various international institutions, towards the immediate release of funds for the Haitian people;

2 Calls on the Council of the European Union to restore its aid to Haiti, particularly in the areas of health, education, food and infrastructure; and

3 Instructs the President of the ACP Council to forward this Resolution to the Council of the European Union, the European Parliament, and the European Commission.

2. Today, after more than eighteen months of political crisis and various conciliation and mediation attempts, the Union considers that, unfortunately, democratic principles are still not upheld in Haiti.

3. The Council of the European Union has therefore decided to review the measures adopted on 20 January 2001 as "appropriate measures" in accordance with Article 96(2)(c), as follows:
- the appropriate measures taken by the Council of the EU on 29 January 2001 will be maintained until a basic agreement has been signed between the two sides in the political crises or, failing that, until 31 December 2002,
- as soon as an agreement between the two sides is signed, all the cooperation instruments affected by the measures decided on 29 January 2001 will gradually be reactivated on the basis of crisis exit indicators, according to the steps set out in the table in the Annex. These indicators could be adapted, if necessary, on the basis of developments in both the political and human rights context. These measures expire on 31 December 2002.

4. The European Union attaches great importance to the ACP-EC Partnership Agreement. Democratic principles and the rule of law, on which the ACP-EC partnership is founded, are essential elements of the Agreement and thus form the cornerstone of EU-Haitian relations.

5. The Union does not wish to penalise the Haitian people and will continue with cooperation programmes which are not affected by these measures. It hopes that the Haitian authorities and all the parties concerned will do everything they can to achieve these crisis exit steps, thereby enabling all cooperation instruments to be progressively resumed.

6. The Union will therefore closely follow efforts to achieve a satisfactory agreement between the two sides to initiate the democratisation process in Haiti. In this respect, the Union hopes that the OAS mediators can reach a generally accepted consensus before long. To this end, it is ready to review its Decision if there are encouraging developments but reserves the right to take further measures if there is no improvement.

Reiterating its full support for the Secretary-General and the Assistant Secretary-General of the OAS, the European Union would encourage them to sustain their mediation efforts and would urge all parties to resume dialogue in a constructive and responsible manner.

The European Union calls on the various parties to agree, in a spirit of national reconciliation, to the compromises necessary for the resolution of the crisis, any prolonging of which can only increase the worry and distress suffered by the Haitian people.

The European Union attaches great importance to Article 9 of the ACP-EC Agreement. Democratic principles and the rule of law, on which the ACP-EU partnership is founded, are essential elements of the Agreement and thus form the cornerstone of our relations.

In this spirit, the Union has closely followed the electoral process in Haiti and is concerned about the irregularities mentioned in the report of the Organisation of American States observer mission, in particular the non-compliance with the Electoral Law in the election of senators after the first round.

This is why the Union expressed disquiet about the electoral process in its declaration of 12 July 2000 and signalled that failure to take account of its concerns might have repercussions on cooperation with Haiti.

The Council of the European Union therefore decided on 2 August 2000 to invite the Haitian authorities and the ACP States to enter into consultations with a view to a thorough examination of the situation and finding ways of remedying it.

These consultations were held in Brussels on 26 September and a number of crucial issues were discussed. The Haitian authorities, represented by His Excellency Mr Fritz Longchamp, Foreign Minister, explained their position and gave their analysis of the situation.

This exchange of views did not, however, lead to progress in finding a satisfactory solution to the issues raised by the Union, which then drafted provisional conclusions expressing regret that its concerns had not been taken into account and envisaging the possibility of appropriate measures as defined in the ACP-EC Agreement. In its conclusions the Union also signalled its awareness of the serious social and economic situation in the country and the importance of not penalising the Haitian people.

Now, the Council of the European Union has decided, in accordance with its provisional conclusions of 26 September, to terminate the consultations opened under Article 96 of the ACP-EC Agreement. The Council of the European Union has thus decided to take the following appropriate measures under Article 96(2)(c):
(a) not making available the second PIN tranche of the eighth EDF of EUR 44,4 million,
(b) suspension of direct budget aid. This mainly affects structural adjustment programmes and food security,
(c) redirection of the remaining funds of the first PIN tranche of the eighth EDF to projects that are of direct benefit to the Haitian people, to strengthen civil society and the private sector, and are liable to support democratisation and underpin the rule of law,
(d) preparations for ninth EDF programming by the Commission delegation in Haiti, which will consult the Haitian Government if necessary.

Unless otherwise decided by the Council of the European Union, no allocation of resources shall be notified while this Decision is valid.

The objective of the Union remains not to penalise the Haitian people while signalling its disapproval of the failure to comply with basic democratic principles. It will monitor closely developments with regard to respect of fundamental democratic freedoms and human rights. It reiterates its readiness to engage in an enhanced political dialogue and contribute to the process of democratisation. To this end, it is ready to review this Decision before 31 December 2001 if there are encouraging developments but reserves the right to take further measures if there is no improvement.