EU Vindictiveness

The government said it has consistently reaffirmed that there is no requirement for a final version, and that the requirement of satisfactory progress has been adequately demonstrated by the submission of a draft approved by Cabinet to the Delegation.

Its case is that there are, therefore, three simple points to be made in this matter.

** Firstly, there are two separate financing agreements, one for general budget support and one for sugar sector support.

** Secondly, the PRSP is not a prerequisite for the release of the sugar sector support because it is not a condition in that financing agreement.

** Thirdly, in any event, satisfactory progress has been made on the PRSP and this progress is in full compliance with the condition stipulated in the general budget support financing agreement.

According to the Guyana Government, it should be added that these developments on the part of the EC represent a fundamental departure from the principles of the budget support mode for delivering aid.

The understanding, it said, has always been that budget support emphasises the achievement of certain specified results, and is disbursed when these results are achieved.

“If the results are achieved early, i.e., before any timeline that might be specified, then the disbursement is made early. If the results are achieved later, then the disbursement is made at that later time. The current position of the EC on this matter, suggesting that funds are lost because certain deadlines were not achieved in their interpretation, departs significantly from this principle.”

The government said it will continue to assert that the conditions discussed above were achieved, for the reasons outlined above, and that the disbursements should be made to Guyana as soon as possible.

It said it has also noted that during the early rounds of provision of budget support by the EU to Guyana, disbursements were made promptly and in full.

“It is a striking coincidence that most of the difficulties encountered in the implementation of EU budget support came shortly after Government adopted a position that was critical of the Economic Partnership Agreement (EPA) that was concluded between the EU and negotiators for CARIFORUM. Government would hope that the difficulties currently being experienced in securing delivery of promised budget support is not somehow connected with the critique of the EPA, and will continue to argue that the anticipated budget support must be delivered in accordance with the financing agreements.”