EU Vows to Help Developing Countries Tackle Economic Crisis
Adjust font size:
The European Commission (EC) on Wednesday outlined a range of actions to help developing countries tide over the ongoing economic crisis.
"The full impact of the current (economic) downturn on our partners is only now becoming clear -- those least responsible for the financial crisis are among those worst hit by its economic effects," said EC President Jose Manuel Barroso.
"The recession must not, cannot, will not be used as an excuse for going back on our promises to keep on increasing aid," he said.
In a policy paper adopted on Wednesday, the EC pledged to keep its aid promises made in 2005 -- aid comprising 0.56 percent of gross national income (GNI) of the European Union (EU). To meet this goal, 20 billion euros (US$26 billion) are needed by 2010.
EU aid was 49 billion euros (US$65 billion) in 2008, representing 0.40 percent of GNI.
The EC, the executive body of the EU, wants greater use of its development aid to leverage other funds, including through the European Investment Bank.
Every euro spent on aid should leverage up to five euros of private investment, it said.
Another proposal is to bring forward and refocus existing commitments on the most vulnerable. Overall, 4.3 billion euros (US$5.7 billion) would bring forward in 2009.
The commission is "frontloading" 3 billion euros (US$4 billion), or 72 percent of its foreseen budget support to African, Pacific and Caribbean nations. In addition, it will direct at least 500 million euros to allow developing countries to continue social safety net spending. A further 800 million euros from an existing "food facility" would be made available in 2009.
The policy paper also wants to make existing aid more effective. A study commissioned by the EC has shown that as much as 7 billion euros (US$9 billion) per year can be freed up by making aid more effective.
Louis Michel, EU commissioner for development and humanitarian aid, said that "we know what we must do: meet our aid targets, advance our money to have an impact when it is most needed, refocus our existing programs to tackle the crisis and then make every euro count."
(Xinhua News Agency April 9, 2009)