Thank you, Mr. President, and thank you Mr. Secretary General, for giving me the opportunity to update the
Standing Committee on events in Vienna and the work of the Liaison Office.
Many of you will have seen my written report that was sent out last week, and I am sure all of you received
the information about the adoption of the OSCE budget for this year, so I assume that I can skip the details in
the interest of time.
In fact, the best news we received in May was that after many months of discussions, the OSCE Permanent
Council in Vienna found a consensus the 2020 Unified Budget - more than five months after the deadline for
its adoption had expired.
The budget was adopted, as was the separate budget of the Special Monitoring Mission to Ukraine, but it drew
the usual criticism regarding unfulfilled national requests, which are often spelled out in so-called
interpretative statements that the national delegations deliver after the adoption of the budget, and, in
particular, regarding the continued absence of an agreement on new Scales of Contribution. This issue, which
has been discussed again and again, including in this body, will stay with us and fuel tensions between
participating States. In this context, France underlined that 17 participating States finance 90 percent of the
budget, which they regard as unfair, demonstrating the need for a better distribution
Some other points made in interpretative statements are as follows:
Kazakhstan expressed concerns over the financial implications of the budget in times of economic hardship
and reemphasizes the need for the reinforcement of the 2nd dimension.
Russia reiterated its calls for a "better balance" between the dimensions and underlined that it considers a
"need to streamline the expenditures in the
3 d di e sio (as ell as to i p o e ODIHR’s ele tio o se atio
methodology)".
The EU stressed that it saw a need for better management of organizational (Secretariat) costs, pointing out
that they contribute up to 60 percent of the budget. They recalled that the Human Dimension is at the heart
of OSCE and the necessity to provide sufficient funds for Election Observation missions.
Italy disagrees with certain views regarding the post table, specifically regarding the post of D/OSG- Deputy
Head of Secretariat, which indicates a behind-the -scenes bitter struggle between some EU countries about
the status of certain high-level posts.
France reiterated its stand that the budget for the field operations is insufficient, a concern shared by the
United Kingdom, as well as the savings in the Secretariat. France urged participating States to follow
Uzbekistan's example in finding a solution to the taxation of salaries of local staff.
The OSCE budget without the separate budget for the SMM now is at 138.2 million Euros, which means 3.1%,
less than the initial 2020 Unified Budget Proposal. It also means that the Zero Nominal Growth policy, which
amounts to an annually shrinking budget, is maintained, despite repeated criticism by the OSCE PA. Just as a
comparison: At the time when I began in Vienna the budget was over 200 million Euros.
The Zero-nominal growth policy extends to all three autonomous institutions. The Office for Democratic
Institutions and Human Rights has a budget of 16 Mio Euros, the High Commissioner on National Minorities of
3,5 Mio Euros, and the Representative on Freedom of the Media of 1,6 Mio Euros.
This means project funding will have to continue to rely on extra-budgetary funds, which have been decreasing
and are even more uncertain in times of economic uncertainty.
Now the Pandemic and the freezing of activities have certainly brought about some savings in certain areas,
but the expectation that this will result in real savings is treacherous. For instance, the ODIHR had to deploy
less EOMs that usually. But in Autumn all those elections that were postponed will take place in parallel to
those that were already scheduled. More EOMs in parallel will put an additional strain on human resources,
and so will the safety measures that need to be put in place. But I can, of course, not speak for the ODIHR.
There is little hope
that the adoptio of e t ea ’s udget ill e a
the framework of the financial impact of the current economic crisis.
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