EU Statement – UN General Assembly 5th Committee: Improving the financial situation of the UN

Madame Chair,

I have the honour to speak on behalf of the Member States of the European Union.

The Candidate Countries Türkiye, Montenegro*, Ukraine, the Republic of Moldova, Bosnia and Herzegovina^* and Georgia, as well as Monaco and San Marino align themselves with this statement.

At the outset, I would like to thank the Assistant Secretary-General Controller for his presentations and updates on the financial situation of the United Nations. We appreciate your efforts to navigate this challenging situation and to convey to Member States the urgent need to address it. We also commend the work of all programme managers, who have strived to deliver on their mandates despite the difficulties of cash shortages.

This statement will not sound new, as, unfortunately, the situation itself is not new. The continuous calls we have made for Member States to honour their obligations remain valid. The European Union and its Member States continue to be concerned about the persistent liquidity shortages, which hinder the Organization's ability to properly and efficiently fulfil its mandates.

Madame Chair,

The European Union and its Member States call upon the Committee to rise to this challenge.

We cannot overlook the fact that the root cause of this issue can only be resolved through the full and timely payment of Member States' contributions. We remind Member States of their obligation to pay their assessed contributions and reiterate our call on all Member States to do so in full, on time and without conditions. In cases where timely payment in full is not possible, we urge Member States to communicate their payment plans clearly and reliably to the Secretariat, ensuring as much predictability as possible. We also welcome the reduction of arrears by some Member States and urge all others with outstanding arrears to make addressing this issue an urgent priority.

As this root cause remains unresolved, we continue to advocate for sustainable remedies to the liquidity 'downward spiral,' which harms the Organization's performance and undermines its relevance as needs have multiplied. When approving budgets, we must consider the broader implications of this ongoing problem.

Regarding solutions, we reiterate our support for a careful and pragmatic review of the United Nations Financial Regulations and Rules, the backbone of the United Nations’ budgetary framework, with the aim of better reflecting their intent whilst allowing for better management of cash. We see merit in retaining unspent appropriations for those Member States in arrears. Additionally, we welcome continued discussions on how comprehensive cash-pooling could be developed, across regular and peacekeeping operations budgets, to make the best use of the liquidity already available across UN accounts, to the benefit of all mandates. More broadly, we emphasize the importance of liquidity-bridging mechanisms and urge the Committee to closely monitor the functioning of all reserve and complementary mechanisms, ensuring they remain fit for purpose. We are ready to address the weaknesses in the budgetary process. Those solutions should nevertheless not be detrimental to those Member States who pay their dues in full and on time, as the European Union Member States, or those that even make advance payments.

On peacekeeping operations, we note the positive and essential impact of the cash pooling measures adopted during our 73rd session. However, we are concerned that these measures have not been sufficient. At this critical time for international peace and security, it should be our shared priority to ensure that a lack of cash does not hamper peacekeepers in the field or hinder the implementation of their mandates.

Madame Chair,

The UN is experiencing a historic moment following the adoption of the Pact for the Future, which showcases that multilateralism remains the way forward, the path to shaping the future together. In this context, it is the fundamental responsibility of the Fifth Committee to ensure that the United Nations has the means to match the ambitions we collectively set, that have the resources and the cash to implement all its mandates fully and effectively.

We look forward to the Secretary-General's proposals on improving the UN’s financial situation, expected to be finalized in early 2025. The European Union will consider all proposals constructively and with an open mind. In the meantime, we will continue working to support the Organization with both flexibility and responsibility including by continuing advancing payments and voluntarily upgrading peacekeeping operations assessments categories, whenever feasible, while ensuring that proposed measures do not burden those who consistently meet their obligations.

Under your leadership, Madame Chair, and in the spirit of constructive consensus, we can take decisive action to improve the UN’s financial situation. The Fifth Committee should become the Committee of success stories, the Committee that enables us to address the enormous challenges facing this Organization.

To conclude, allow me to reiterate the full commitment of the European Union and its Member States to the United Nations. We assure you that we will do everything in our power to help provide the Organization with a sustainable solution to this longstanding challenge.

I thank you, Madame Chair.

* Montenegro and Bosnia and Herzegovina continue to be part of the Stabilisation and Association Process.