The member states of the EU decided in late January to begin consultations with the Bissau-Guinean government, in the wake of EU concerns over a possible infringement of human rights and the rule of law. The European Commission had earlier called on the country's leadership to put an end to cases of illegal detention by the military, to strengthen the powers of the civilian authorities, to restart the security sector reform and to accept an international mission to promote all of these aims. The consultation procedure is based on Article 96 of the Cotonou Agreement concluded between the EU and the African, Caribbean and Pacific countries, which allows one of the two parties to open consultations if it considers that the other party has failed to fulfil an obligation stemming from respect for human rights, democratic principles and the rule of law.

If the consultations do not lead to an agreement between the two parties, the EU may decide to adopt "appropriate measures"-which could entail an extension of its partial freeze on development co-operation with Guinea-Bissau. These measures, however, would not affect humanitarian assistance or programmes that target the local population directly, and co-operation would gradually be resumed in the case of satisfactory commitments by the government. Guinea-Bissau is set to receive a total of EUR120m (US$156m) from the European Development Fund for the period 2008-13. This sum consists of three separate components:

• reform of the administration, the security sector and the justice system to strengthen the rule of law;
• improving access to basic services, such as water and energy; and
• direct budgetary aid.

Pending the outcome of the consultation, the EU has adopted precautionary measures and temporarily suspended part of its aid. This is the second time that the EU has initiated an Article 96 consultation procedure with Guinea-Bissau. Similar consultations were set in train in January 2004, following the coup that toppled the democratically elected president, Kumba Yala, and resulted in an agreement regarding a transitional roadmap but with no suspension of co-operation. These earlier consultations were judged to be a relative success, leading to the holding of legislative elections in March 2004.