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P 261607Z MAR 08
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UNCLAS SECTION 01 OF 02 BRUSSELS 000451 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREF PREL PHUM EAID EUN
SUBJECT: EU NOT REVEALING ITS HAND YET ON 08 FUNDING FOR 
IRAQI REFUGEES AND IDPS 
 
REF: A. A)STATE 30028 
 
     ¶B. B) BRUSSELS 00108 
 
1.(SBU) Summary: In preparation for Ambassador James Foley's 
upcoming trip to Brussels and in response to reftel demarche, 
Refugee Officer and PRM Assistant held a series of meetings 
March 19-20 with European Commission (EC) officials, as well 
as UNHCR and others, to assess the Commission's 2008 funding 
plans for Iraqi refugees and IDPs.  The European Commission 
Humanitarian Aid Office (ECHO) has committed 20 million euros 
for 2008, up from 17.8 million in 2007, and has left the door 
open to allocate more from its general fund later in the 
year.  The EC's External Relations Directorate (RELEX), which 
gave 48 million euros in 2007, has not said publicly yet how 
much it will allocate in 2008.  The European Parliament, 
which has extensive budgetary oversight, weighed in with a 
March 13 report urging more funding for Iraqi refugees and 
IDPs.  Representatives from the UNHCR office in Brussels, as 
well as IRC and other NGOs, criticize the EC for underfunding 
the Iraqi humanitarian crisis by "hiding behind" claims that 
needs assessments and program evaluation mechanisms are 
imperfect.  End summary. 
 
ECHO funding to increase, but by how much? 
------------------------------------------ 
2.(U) ECHO has so far allocated 20 million euros for Iraqi 
refugees and IDPs for 2008, up from 17.8 million last year 
(7.8 million for Iraq; 10 million for Syria, Jordan and 
Turkey).  Julia Koch, Head of Sector for the Middle East, 
said that number may increase as the year goes on since ECHO 
keeps a significant portion of its budget in reserve to 
respond to humanitarian emergencies as they arise throughout 
the year.  She noted that at this time last year, ECHO had 
not allocated any money for Iraqis, so the 20 million euros 
earmarked already this year represents an acknowledgment that 
needs have increased.  The allocation decision is still in 
the clearance process at ECHO, but Koch said she expects the 
20 million to be split more or less equally between IDPs in 
Iraq and refugees in surrounding countries. 
 
Question of vulnerability troubles ECHO 
--------------------------------------- 
3.(SBU) ECHO seems to have moved from its position earlier in 
2008 of insisting that the counts of refugees and IDPs are 
inaccurate and perhaps inflated.  Instead, Koch said March 19 
that ECHO is focusing on needs instead of numbers.  ECHO's 
current concern, however, is in identifying the most 
vulnerable refugees and IDPs.  Koch said the most vulnerable 
could represent 10 percent or 80 percent of the refugee and 
IDP populations, ECHO simply does not know.  Because ECHO's 
mandate is to focus on life-saving humanitarian aid, it is 
important that ECHO money be focused on only the most needy, 
she said.  When weighing priorities worldwide, can ECHO be 
sure that the average Iraqi refugee in Jordan is more needy 
than a refugee, for example, in Sudan, she asked.  Judith 
Kumin, UNHCR Brussels Regional Representative, said that 
argument loses steam when one looks at the vast amount of 
money ECHO spent in the Balkans during the 1990s where many 
refugees and IDPs had needs that were different from those in 
an African or Southeast Asian context.  "That discrepancy 
will always exist," she said.  Kumin said ECHO, like other 
donors, should rely on UNHCR registration figures and 
vulnerability assessments. 
 
ECHO must track every euro cent 
------------------------------- 
4.(SBU) Another concern that ECHO frequently raises is the 
difficulty of tracking how its funding is used in Iraq and 
the surrounding countries.  In Syria, the problem stems from 
restrictions that the Syrian government has placed on NGOs. 
In particular, ECHO says an MOU provision requiring NGOs to 
have the government of Syria co-sign withdrawals from its 
local bank account runs counter to EC financial regulations. 
In Iraq, the problem is that general insecurity makes project 
monitoring difficult.  In 2007, ECHO funded only ICRC within 
Iraq and set up a "remote monitoring" system.  Koch said ECHO 
 
BRUSSELS 00000451  002 OF 002 
 
 
has been satisfied with that process and will probably extend 
it to other IOs or NGOs this year.  She notes that ECHO 
management often cites the need to track closely where its 
money goes because European taxpayers would not react well to 
hearing that even one euro had been diverted from core 
humanitarian aid.  Kumin, of UNHCR, said ECHO has moved too 
far along the spectrum from verification of spending into 
auditing of accounts.  All donors but ECHO rely on the UN 
Board of External Auditors, creating a dilemma for UNHCR, 
which does not want to respond to separate auditing 
requirements from each donor, she said. 
 
RELEX 2008 funding for Iraqis not yet public 
-------------------------------------------- 
5.(U) Because ECHO does not give money directly to 
governments, bilateral aid to Syria and Jordan has come from 
RELEX, the external relations arm of the EC.  In 2007, RELEX 
gave a total of 48 million euro, according to figures given 
by Commission officials at a recent think tank event.  The 
total includes 26 million euro to the Jordanian Ministry of 
Education, 9 million to the Syrian Ministry of Health, 3 
million to UNICEF for education in Syria, and 10 million for 
IDPs in Iraq through Cluster F (refugees, IDPs and durable 
solutions) of the UN Development Group Iraq Trust Fund.  The 
bulk of the funds came from RELEX's EU-Mediterranean 
Partnership (MEDA) account, while the UNICEF contribution 
came from the EU's Stability Instrument funding.  Commission 
officials have not said publicly what the planned 2008 
allocation will be, indicating only that they are in the 
early stages of programming. 
 
European Parliament calls for EU to do more 
------------------------------------------- 
6.(U) The European Parliament (EP) on March 13 overwhelmingly 
adopted (506 in favor, 25 opposed and 26 abstentions) a 
report entitled "The European Union's Role in Iraq," which 
recommended that the European Council, together with the 
Commission develop a new Iraq strategy focusing on good 
governance, human rights, and humanitarian assistance.  The 
EP specifically called for more assistance to Iraqi refugees 
in Jordan, Syria and other regional countries "and to 
significantly increase the transparency and efficiency of EU 
assistance to Iraqi refugees in those countries."  It also 
called on ECHO to increase its support for refugees and IDPs 
through NGOs and international organizations. 
 
Comment 
------- 
7.(SBU) Although it is nearly three months into the EU's 
fiscal year, the funding picture for Iraq and the region is 
remarkably unclear.  ECHO has committed 20 million euro and 
hinted that more is to come, while RELEX has given no 
indication of its funding levels.  The time appears opportune 
for Ambassador Foley to encourage increased EU funding for 
refugees and IDPs since funding decisions have not been 
finalized.  The European Parliament, in its March 13 report, 
clearly called on the Commission to do more, so Ambassador 
Foley's April 1 dinner with MEPs should provide a receptive 
venue for U.S. views. 
MURRAY 
.