This Annual Report presents the key features of the European Community’s policy initiatives and activities in the field of development co-operation and external assistance in 2004. It aims to reach a wide audience, including the institutions of the European Union, key groups in the Member States (especially Parliaments and administrations), civil society and the general public, who all help make this important effort possible, as well as partner developing countries, and other agencies and organisations active in the area of development and external assistance.

The European Union holds a unique status on the international stage and among the donor community. It is the world’s largest donor, as it accounts for more than half of the world’s official development assistance.

The Commission itself manages +/- 11% of the world total, having spent over €6.9 billion in 2004. That means that the European Commission manages one-fifth of the Official Development Aid (ODA) delivered by the EU.

Over the past four years, the Commission has been reforming the way it prioritises,

organises and implements assistance projects and programmes abroad, so as to make more effective use of funds provided by the European taxpayer. A special Eurobarometer  survey carried through in 2004 confirms that the European public expects the European Union to play a central role in development. Six out of 10 European citizens believe that the European Commission helps poor people in developing countries – a goal that 9 out of 10 recognise as important.

In the major crises and natural disasters we witnessed in 2004, the European Commission played an important role, responding with emergency assistance when required, as well as continuing aid efforts in the regions which underwent crises in previous years.

This support in the search for peace, stability and reconstruction in countries such as Afghanistan, Timor-Leste, Democratic Republic of Congo, Haiti and Fiji, and the efforts towards economic growth and reduction of poverty in countries such as Uganda, Vietnam or Rwanda, bear witness to the Commission’s vital role in the world today.

2004 was also the year of the EU enlargement, which has had a major impact on the Union’s external relations. The Commission has supported the active participation of the new Member States in EU development policy through a “Road Map” programme adopted in 2003 which has continued and expanded in 2004-2005. The effects of enlargement go well beyond the Union’s immediate vicinity – it marks a

significant increase in the Union’s importance in global efforts to promote peace.