BETA


2008/2050(INI) Follow-up of the Monterrey Conference of 2002 on financing for development

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead DEVE BERMAN Thijs (icon: PSE PSE)
Committee Opinion ECON
Committee Opinion BUDG JENSEN Anne E. (icon: ALDE ALDE)
Lead committee dossier:
Legal Basis:
RoP 54, RoP 54-p4

Events

2009/01/29
   EC - Commission response to text adopted in plenary
Documents
2008/10/17
   EC - Commission response to text adopted in plenary
Documents
2008/09/23
   EP - Results of vote in Parliament
2008/09/23
   EP - Decision by Parliament
Details

The European Parliament adopted by 610 votes to 25, with 14 abstentions, a resolution on the follow-up to the Monterrey Conference of 2002 on financing for development.

The own initiative report had been tabled for consideration by Thijs BERMAN (PES, NL) on behalf of the Committee on Development.

Firstly, the European Parliament reiterated its commitment to poverty eradication , sustainable development and the achievement of the Millennium Development Goals (MDGs), as the only way to bring about social justice and improved quality of life for the approximately one billion people globally who live in extreme poverty.

According to MEPs, the immediate actions to be taken by the EU to tackle the dramatic consequences of the soaring food prices in developing countries should be carried out as part of the financial efforts required by the Monterrey Consensus (International Conference on Financing for Development in Monterrey, Mexico, March 2002). They therefore look forward to a concrete proposal from the Commission on the use of emergency funds.

Overall, MEPs stress the need to find the right balance between the need to provide development aid to partner countries, trusting them to develop the right tools for implementation of the funds, while earmarking the financial aid in order to avoid misuse of the aid. Parliament underlines the absolute need for the EU to aim for the highest level of coordination in order to achieve coherence with other Community policies (environment, migration, human rights, agriculture, etc.) and avoid duplication of work and inconsistency of activities.

Volumes of Official Development Assistance (ODA) : MEPs point out that the EU is the world's leading donor in ODA, representing almost 60% of the world official development aid. Nevertheless, they call on the Commission to provide clear and transparent data on the share of the EU budget devoted to EU development aid in order to assess the follow-up of the Monterrey Consensus by all European donors. Once again, they regret the lack of visibility of European aid and stress the need to improve this visibility. They recall that the EU met its binding ODA target of 0.39% of GNI by 2006, but regret the alarming decrease in EU aid in 2007 (from EUR 47.7 billion in 2006, or 0.41% of EU collective GNI, to EUR 46.1 billion in 2007, or 0.38% of EU collective GNI). Member States are therefore called upon to raise ODA volumes to achieve their promised target of 0.56% of GNI in 2010. Parliament also expresses serious concern that a majority of the Member States (18 out of 27, especially Latvia, Italy, Portugal, Greece and the Czech Republic) were unable to raise their level of ODA between 2006 and 2007 and that there has even been a dramatic reduction of over 10% in a number of countries such as Belgium, France and the United Kingdom. Member States are called upon to fulfil the ODA volumes to which they are committed. Parliament notes with satisfaction that some Member States (Denmark, Ireland, Luxembourg, Spain, Sweden and the Netherlands) are certain to reach their ODA targets for 2010, and is confident that these Member States will maintain their high levels of ODA.

MEPs also insist that these reductions should not take place again, bearing in mind that the EU will have given EUR 75 billion less than was promised for the period 2005-2010 if the current trend continues. It is therefore necessary to develop binding multi-annual timetables, as some Member States have already done, to meet the UN target of 0.7% by 2015. Therefore, overall, MEPs call on the Member States to increase ODA levels in a sustainable manner by concentrating on figures with the debt relief component removed.

Speed, flexibility, predictability and sustainability of financial flows : in addition to the granting of aid, MEPs consider that a certain number of rules must be obeyed to make the provision of aid effective. Assistance needs to be delivered in a timely manner and be flexible in order to respond to changing circumstances, such as rising food prices. The funding should also be predictable to allow partner countries to plan for sustainable development. MEPs also call for the clear observance of the principles of responsible lending and financing.

Debt and capital flight : Parliament observes that the 2007 decreases in reported aid levels are due in some cases to the artificial boosting of figures in 2006 by debt relief; calls on Member States to increase ODA levels in a sustainable manner by concentrating on figures with the debt relief component removed. MEPs fully endorse efforts by developing countries to maintain long-term debt sustainability and to implement the initiative for very Heavily Indebted Poor Countries (HIPC). They regret, however, that the debt relief plans exclude a large number of countries for which debt remains an obstacle to development. Furthermore, MEPs call on the Commission to address the issue of 'odious' or illegitimate debts (meaning debts having arisen from irresponsible, self-interested, reckless or unfair lending) and call on it to limit the rights of commercial creditors, in the event of judicial proceedings. At the same time, all Member States are called upon to adhere to the framework of debt sustainability and to recognise that lender liability does not just involve compliance with the sustainability framework, but also entails:

taking into consideration the vulnerability of borrowing countries to external shocks; incorporating transparency requirements in borrowing agreements; exercising greater vigilance in ensuring that the borrowing does not contribute to human rights violations or an increase in corruption.

Parliament therefore urges the EU to put in place some form of international insolvency procedures or fair and transparent arbitration procedure to deal efficiently and equitably with any future debt crisis.

The Commission is also criticised for its lack of initiative to prevent capital flight, which does serious damage to the development of sustainable economic systems in developing countries. It is therefore necessary, as required by the Monterrey Consensus, to close down tax havens , some of which are located within the EU or operate in close connection with Member States. They recall that, according to the World Bank, the illegal component of this capital flight amounts to between 1 000 and 1 600 billion USD each year, half of which comes from developing countries. Therefore, the Commission and the Member States must create measures to promote the global extension of the principle of the automatic exchange of tax information and establish a Code of Conduct on tax evasion, such as that currently being drawn up at the United Nations Economic and Social Council (ECOSOC).

Innovative financing mechanisms : while Parliament welcomes the innovative financing mechanisms put forward by the Member States, it asks that these be easy to implement and effective. These instruments should provide for new sources of funding and deploy credit guarantees. At the same time, the Commission is called upon to enhance funding of climate change adaptation measures. MEP stress, in particular, that innovative finance mechanisms should be developed urgently for this purpose, such as levies on aviation and oil trading , as well as by earmarking of auctioning revenues from the EU Emissions Trading System (EU ETS). They also welcome the Commission's proposal to establish a Global Climate Financing Mechanism, based on the principal of frontloading aid to finance mitigation and adaptation measures in developing countries. Until this mechanism enters into force, they call on the EU to earmark at least 25% of future auctioning revenues from the EU ETS to finance climate change adaptation and mitigation measures in developing countries.

Micro-credit : MEPs call on the Commission to develop access to finance for small-scale entrepreneurs and farmers, as a means of increasing food production and providing a sustainable solution to the food crisis. Furthermore, the European Investment Bank (EIB) is called upon set up a guarantee fund in support of micro-credit and risk-hedging schemes that respond closely to the needs of local food producers in poorer developing countries.

Reforming international systems : lastly, MEPs call on the Council and the Commission to include the European Development Fund in the EU budget at the 2008/2009 Midterm Review, in order to enhance its democratic legitimacy. Regretting the current system of voting rights at the IMF, MEPs call on the Commission and the Member States to demonstrate their interest in double-majority decision-making (shareholders/states) within the institution responsible for international financial stability. The Member States are also called upon to reform the World Bank.

Documents
2008/09/23
   EP - End of procedure in Parliament
2008/09/22
   EP - Debate in Parliament
2008/08/04
   EP - Committee report tabled for plenary, single reading
Documents
2008/08/04
   EP - Committee report tabled for plenary
Documents
2008/06/25
   EP - Vote in committee
Details

The Committee on Development unanimously adopted the own initiative report by Thijs BERMAN (PES, NL) on the follow-up to the Monterrey Conference of 2002, reiterating the Parliament’s commitment to poverty eradication, sustainable development and the achievement of the Millennium Development Goals (MDGs), as the only way to bring about social justice and improved quality of life for the approximately one billion people globally who live in extreme poverty.

According to MEPs, the immediate actions to be taken by the EU to tackle the dramatic consequences of the soaring food prices in developing countries should be carried out as part of the financial efforts required by the Monterrey Consensus (International Conference on Financing for Development in Monterrey, Mexico, March 2002). They therefore look forward to a concrete proposal from the Commission on the use of emergency funds.

Overall, MEPs stress the need to find the right balance between the need to provide development aid to partner countries, trusting them to develop the right tools for implementation of the funds, while earmarking the financial aid in order to avoid misuse of the aid.

Volumes of Official Development Assistance (ODA) : MEPs point out that the EU is the world's leading donor in ODA, representing almost 60% of the world official development aid. Nevertheless, they call on the Commission to provide clear and transparent data on the share of the EU budget devoted to EU development aid in order to assess the follow-up of the Monterrey Consensus by all European donors. Once again, they regret the lack of visibility of European aid and stress the need to improve this visibility. They recall that the EU met its binding ODA target of 0.39% of GNI by 2006, but regret the alarming decrease in EU aid in 2007 (from EUR 47.7 billion in 2006, or 0.41% of EU collective GNI, to EUR 46.1 billion in 2007, or 0.38% of EU collective GNI). Member States are therefore called upon to raise ODA volumes to achieve their promised target of 0.56% of GNI in 2010. MEPs also insist that these reductions should not take place again, bearing in mind that the EU will have given EUR 75 billion less than was promised for the period 2005-2010 if the current trend continues. They also express concern that a number of Member States have reduced their level of aid (sometimes dramatically) or are backloading ODA increases, leading to a net loss for developing countries of more than EUR 17 billion. It is therefore necessary to develop binding multi-annual timetables, as some Member States have already done, to meet the UN target of 0.7% by 2015, particularly in view of the forthcoming International Conference on Financing for Development. Therefore, overall, MEPs call on the Member States to increase ODA levels in a sustainable manner.

Speed, flexibility, predictability and sustainability of financial flows : in addition to the granting of aid, MEPs consider that a certain number of rules must be obeyed to make the provision of aid effective. Assistance needs to be delivered in a timely manner and be flexible in order to respond to changing circumstances, such as rising food prices. The funding should also be predictable to allow partner countries to plan for sustainable development. MEPs also call for the clear observance of the principles of responsible lending and financing.

Debt and capital flight : MEPs fully endorse efforts by developing countries to maintain long-term debt sustainability and to implement the initiative for very Heavily Indebted Poor Countries (HIPC). They regret, however, that the debt relief plans exclude a large number of countries for which debt remains an obstacle to development. Furthermore, MEPs call on the Commission to address the issue of 'odious' or illegitimate debts (meaning debts having arisen from irresponsible, self-interested, reckless or unfair lending) and call on it to limit the rights of commercial creditors, in the event of judicial proceedings. At the same time, all Member States are called upon to adhere to the framework of debt sustainability and to recognise that lender liability does not just involve compliance with the sustainability framework, but also entails:

taking into consideration the vulnerability of borrowing countries to external shocks; incorporating transparency requirements in borrowing agreements; exercising greater vigilance in ensuring that the borrowing does not contribute to human rights violations or an increase in corruption.

MEPs therefore urge the EU to put in place some form of international insolvency procedures or fair and transparent arbitration procedure to deal efficiently and equitably with any future debt crisis.

The Commission is also criticised for its lack of initiative to prevent capital flight, which does serious damage to the development of sustainable economic systems in developing countries. It is therefore necessary, as required by the Monterrey Consensus, to close down tax havens , some of which are located within the EU or operate in close connection with Member States. They recall that, according to the World Bank, the illegal component of this capital flight amounts to between 1 000 and 1 600 billion USD each year, half of which comes from developing countries. Therefore, the Commission and the Member States must create measures to promote the global extension of the principle of the automatic exchange of tax information and establish a Code of Conduct on tax evasion, such as that currently being drawn up at the United Nations Economic and Social Council (ECOSOC).

Innovative financing mechanisms : while MEPs welcome the innovative financing mechanisms put forward by the Member States, they ask that these be easy to implement and effective. These instruments should provide for new sources of funding and deploy credit guarantees. At the same time, the Commission is called upon to enhance funding of climate change adaptation measures. They stress, in particular, that innovative finance mechanisms should be developed urgently for this purpose, such as levies on aviation and oil trading , as well as by earmarking of auctioning revenues from the EU Emissions Trading System (EU ETS). They also welcome the Commission's proposal to establish a Global Climate Financing Mechanism, based on the principal of frontloading aid to finance mitigation and adaptation measures in developing countries. Until this mechanism enters into force, they call on the EU to earmark at least 25% of future auctioning revenues from the EU ETS to finance climate change adaptation and mitigation measures in developing countries.

Micro-credit : MEPs call on the Commission to develop access to finance for small-scale entrepreneurs and farmers, as a means of increasing food production and providing a sustainable solution to the food crisis. Furthermore, the European Investment Bank (EIB) is called upon set up a guarantee fund in support of micro-credit and risk-hedging schemes that respond closely to the needs of local food producers in poorer developing countries.

Reforming international systems : lastly, MEPs call on the Council and the Commission to include the European Development Fund in the EU budget at the 2008/2009 Midterm Review, in order to enhance its democratic legitimacy. Regretting the current system of voting rights at the IMF, MEPs call on the Commission and the Member States to demonstrate their interest in double-majority decision-making (shareholders/states) within the institution responsible for international financial stability. The Member States are also called upon to reform the World Bank.

2008/06/18
   EP - Committee opinion
Documents
2008/06/09
   EP - Amendments tabled in committee
Documents
2008/05/14
   EP - Committee draft report
Documents
2008/03/13
   EP - Committee referral announced in Parliament
2008/03/12
   EP - JENSEN Anne E. (ALDE) appointed as rapporteur in BUDG
2008/01/29
   EP - BERMAN Thijs (PSE) appointed as rapporteur in DEVE

Documents

Votes

Rapport Berman A6-0310/2008 - résolution #

2008/09/23 Outcome: +: 610, -: 25, 0: 14
DE IT FR ES PL GB RO NL HU PT CZ EL BG FI DK BE AT LT IE SE LV SK SI LU CY EE MT
Total
83
60
65
43
44
56
31
26
20
18
21
22
14
14
14
19
13
12
11
17
9
9
7
6
5
5
5
icon: PPE-DE PPE-DE
247

Denmark PPE-DE

1

Lithuania PPE-DE

1

Ireland PPE-DE

3

Luxembourg PPE-DE

3

Cyprus PPE-DE

2

Estonia PPE-DE

For (1)

1

Malta PPE-DE

2
icon: PSE PSE
164

Czechia PSE

For (1)

1

Lithuania PSE

2

Ireland PSE

1

Slovakia PSE

2

Slovenia PSE

For (1)

1

Luxembourg PSE

For (1)

1

Estonia PSE

3
icon: ALDE ALDE
85

Spain ALDE

1

Hungary ALDE

1

Ireland ALDE

For (1)

1

Sweden ALDE

For (1)

1

Latvia ALDE

1

Slovenia ALDE

2

Luxembourg ALDE

For (1)

1

Cyprus ALDE

For (1)

1

Estonia ALDE

For (1)

1
icon: UEN UEN
38

Denmark UEN

Abstain (1)

1

Lithuania UEN

2
icon: GUE/NGL GUE/NGL
38

Spain GUE/NGL

For (1)

1

Netherlands GUE/NGL

2

Portugal GUE/NGL

3

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

1

Ireland GUE/NGL

1

Sweden GUE/NGL

2

Cyprus GUE/NGL

2
icon: Verts/ALE Verts/ALE
33

Italy Verts/ALE

1

Spain Verts/ALE

1

United Kingdom Verts/ALE

4

Romania Verts/ALE

1

Finland Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Austria Verts/ALE

1

Sweden Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: NI NI
24

Italy NI

2
2

Czechia NI

Against (1)

1

Belgium NI

3

Austria NI

1

Slovakia NI

2
icon: IND/DEM IND/DEM
20

France IND/DEM

Abstain (1)

3

Poland IND/DEM

3

Netherlands IND/DEM

2

Czechia IND/DEM

Against (1)

1

Greece IND/DEM

1

Denmark IND/DEM

For (1)

1

Ireland IND/DEM

For (1)

1

Sweden IND/DEM

2
AmendmentsDossier
53 2008/2050(INI)
2008/06/09 DEVE, DEVE 53 amendments...
source: PE-407.785

History

(these mark the time of scraping, not the official date of the change)

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events
  • date: 2008-03-13T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2008-06-25T00:00:00 type: Vote in committee, 1st reading/single reading body: EP summary: The Committee on Development unanimously adopted the own initiative report by Thijs BERMAN (PES, NL) on the follow-up to the Monterrey Conference of 2002, reiterating the Parliament’s commitment to poverty eradication, sustainable development and the achievement of the Millennium Development Goals (MDGs), as the only way to bring about social justice and improved quality of life for the approximately one billion people globally who live in extreme poverty. According to MEPs, the immediate actions to be taken by the EU to tackle the dramatic consequences of the soaring food prices in developing countries should be carried out as part of the financial efforts required by the Monterrey Consensus (International Conference on Financing for Development in Monterrey, Mexico, March 2002). They therefore look forward to a concrete proposal from the Commission on the use of emergency funds. Overall, MEPs stress the need to find the right balance between the need to provide development aid to partner countries, trusting them to develop the right tools for implementation of the funds, while earmarking the financial aid in order to avoid misuse of the aid. Volumes of Official Development Assistance (ODA) : MEPs point out that the EU is the world's leading donor in ODA, representing almost 60% of the world official development aid. Nevertheless, they call on the Commission to provide clear and transparent data on the share of the EU budget devoted to EU development aid in order to assess the follow-up of the Monterrey Consensus by all European donors. Once again, they regret the lack of visibility of European aid and stress the need to improve this visibility. They recall that the EU met its binding ODA target of 0.39% of GNI by 2006, but regret the alarming decrease in EU aid in 2007 (from EUR 47.7 billion in 2006, or 0.41% of EU collective GNI, to EUR 46.1 billion in 2007, or 0.38% of EU collective GNI). Member States are therefore called upon to raise ODA volumes to achieve their promised target of 0.56% of GNI in 2010. MEPs also insist that these reductions should not take place again, bearing in mind that the EU will have given EUR 75 billion less than was promised for the period 2005-2010 if the current trend continues. They also express concern that a number of Member States have reduced their level of aid (sometimes dramatically) or are backloading ODA increases, leading to a net loss for developing countries of more than EUR 17 billion. It is therefore necessary to develop binding multi-annual timetables, as some Member States have already done, to meet the UN target of 0.7% by 2015, particularly in view of the forthcoming International Conference on Financing for Development. Therefore, overall, MEPs call on the Member States to increase ODA levels in a sustainable manner. Speed, flexibility, predictability and sustainability of financial flows : in addition to the granting of aid, MEPs consider that a certain number of rules must be obeyed to make the provision of aid effective. Assistance needs to be delivered in a timely manner and be flexible in order to respond to changing circumstances, such as rising food prices. The funding should also be predictable to allow partner countries to plan for sustainable development. MEPs also call for the clear observance of the principles of responsible lending and financing. Debt and capital flight : MEPs fully endorse efforts by developing countries to maintain long-term debt sustainability and to implement the initiative for very Heavily Indebted Poor Countries (HIPC). They regret, however, that the debt relief plans exclude a large number of countries for which debt remains an obstacle to development. Furthermore, MEPs call on the Commission to address the issue of 'odious' or illegitimate debts (meaning debts having arisen from irresponsible, self-interested, reckless or unfair lending) and call on it to limit the rights of commercial creditors, in the event of judicial proceedings. At the same time, all Member States are called upon to adhere to the framework of debt sustainability and to recognise that lender liability does not just involve compliance with the sustainability framework, but also entails: taking into consideration the vulnerability of borrowing countries to external shocks; incorporating transparency requirements in borrowing agreements; exercising greater vigilance in ensuring that the borrowing does not contribute to human rights violations or an increase in corruption. MEPs therefore urge the EU to put in place some form of international insolvency procedures or fair and transparent arbitration procedure to deal efficiently and equitably with any future debt crisis. The Commission is also criticised for its lack of initiative to prevent capital flight, which does serious damage to the development of sustainable economic systems in developing countries. It is therefore necessary, as required by the Monterrey Consensus, to close down tax havens , some of which are located within the EU or operate in close connection with Member States. They recall that, according to the World Bank, the illegal component of this capital flight amounts to between 1 000 and 1 600 billion USD each year, half of which comes from developing countries. Therefore, the Commission and the Member States must create measures to promote the global extension of the principle of the automatic exchange of tax information and establish a Code of Conduct on tax evasion, such as that currently being drawn up at the United Nations Economic and Social Council (ECOSOC). Innovative financing mechanisms : while MEPs welcome the innovative financing mechanisms put forward by the Member States, they ask that these be easy to implement and effective. These instruments should provide for new sources of funding and deploy credit guarantees. At the same time, the Commission is called upon to enhance funding of climate change adaptation measures. They stress, in particular, that innovative finance mechanisms should be developed urgently for this purpose, such as levies on aviation and oil trading , as well as by earmarking of auctioning revenues from the EU Emissions Trading System (EU ETS). They also welcome the Commission's proposal to establish a Global Climate Financing Mechanism, based on the principal of frontloading aid to finance mitigation and adaptation measures in developing countries. Until this mechanism enters into force, they call on the EU to earmark at least 25% of future auctioning revenues from the EU ETS to finance climate change adaptation and mitigation measures in developing countries. Micro-credit : MEPs call on the Commission to develop access to finance for small-scale entrepreneurs and farmers, as a means of increasing food production and providing a sustainable solution to the food crisis. Furthermore, the European Investment Bank (EIB) is called upon set up a guarantee fund in support of micro-credit and risk-hedging schemes that respond closely to the needs of local food producers in poorer developing countries. Reforming international systems : lastly, MEPs call on the Council and the Commission to include the European Development Fund in the EU budget at the 2008/2009 Midterm Review, in order to enhance its democratic legitimacy. Regretting the current system of voting rights at the IMF, MEPs call on the Commission and the Member States to demonstrate their interest in double-majority decision-making (shareholders/states) within the institution responsible for international financial stability. The Member States are also called upon to reform the World Bank.
  • date: 2008-08-04T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2008-310&language=EN title: A6-0310/2008
  • date: 2008-09-22T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20080922&type=CRE title: Debate in Parliament
  • date: 2008-09-23T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=15392&l=en title: Results of vote in Parliament
  • date: 2008-09-23T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2008-420 title: T6-0420/2008 summary: The European Parliament adopted by 610 votes to 25, with 14 abstentions, a resolution on the follow-up to the Monterrey Conference of 2002 on financing for development. The own initiative report had been tabled for consideration by Thijs BERMAN (PES, NL) on behalf of the Committee on Development. Firstly, the European Parliament reiterated its commitment to poverty eradication , sustainable development and the achievement of the Millennium Development Goals (MDGs), as the only way to bring about social justice and improved quality of life for the approximately one billion people globally who live in extreme poverty. According to MEPs, the immediate actions to be taken by the EU to tackle the dramatic consequences of the soaring food prices in developing countries should be carried out as part of the financial efforts required by the Monterrey Consensus (International Conference on Financing for Development in Monterrey, Mexico, March 2002). They therefore look forward to a concrete proposal from the Commission on the use of emergency funds. Overall, MEPs stress the need to find the right balance between the need to provide development aid to partner countries, trusting them to develop the right tools for implementation of the funds, while earmarking the financial aid in order to avoid misuse of the aid. Parliament underlines the absolute need for the EU to aim for the highest level of coordination in order to achieve coherence with other Community policies (environment, migration, human rights, agriculture, etc.) and avoid duplication of work and inconsistency of activities. Volumes of Official Development Assistance (ODA) : MEPs point out that the EU is the world's leading donor in ODA, representing almost 60% of the world official development aid. Nevertheless, they call on the Commission to provide clear and transparent data on the share of the EU budget devoted to EU development aid in order to assess the follow-up of the Monterrey Consensus by all European donors. Once again, they regret the lack of visibility of European aid and stress the need to improve this visibility. They recall that the EU met its binding ODA target of 0.39% of GNI by 2006, but regret the alarming decrease in EU aid in 2007 (from EUR 47.7 billion in 2006, or 0.41% of EU collective GNI, to EUR 46.1 billion in 2007, or 0.38% of EU collective GNI). Member States are therefore called upon to raise ODA volumes to achieve their promised target of 0.56% of GNI in 2010. Parliament also expresses serious concern that a majority of the Member States (18 out of 27, especially Latvia, Italy, Portugal, Greece and the Czech Republic) were unable to raise their level of ODA between 2006 and 2007 and that there has even been a dramatic reduction of over 10% in a number of countries such as Belgium, France and the United Kingdom. Member States are called upon to fulfil the ODA volumes to which they are committed. Parliament notes with satisfaction that some Member States (Denmark, Ireland, Luxembourg, Spain, Sweden and the Netherlands) are certain to reach their ODA targets for 2010, and is confident that these Member States will maintain their high levels of ODA. MEPs also insist that these reductions should not take place again, bearing in mind that the EU will have given EUR 75 billion less than was promised for the period 2005-2010 if the current trend continues. It is therefore necessary to develop binding multi-annual timetables, as some Member States have already done, to meet the UN target of 0.7% by 2015. Therefore, overall, MEPs call on the Member States to increase ODA levels in a sustainable manner by concentrating on figures with the debt relief component removed. Speed, flexibility, predictability and sustainability of financial flows : in addition to the granting of aid, MEPs consider that a certain number of rules must be obeyed to make the provision of aid effective. Assistance needs to be delivered in a timely manner and be flexible in order to respond to changing circumstances, such as rising food prices. The funding should also be predictable to allow partner countries to plan for sustainable development. MEPs also call for the clear observance of the principles of responsible lending and financing. Debt and capital flight : Parliament observes that the 2007 decreases in reported aid levels are due in some cases to the artificial boosting of figures in 2006 by debt relief; calls on Member States to increase ODA levels in a sustainable manner by concentrating on figures with the debt relief component removed. MEPs fully endorse efforts by developing countries to maintain long-term debt sustainability and to implement the initiative for very Heavily Indebted Poor Countries (HIPC). They regret, however, that the debt relief plans exclude a large number of countries for which debt remains an obstacle to development. Furthermore, MEPs call on the Commission to address the issue of 'odious' or illegitimate debts (meaning debts having arisen from irresponsible, self-interested, reckless or unfair lending) and call on it to limit the rights of commercial creditors, in the event of judicial proceedings. At the same time, all Member States are called upon to adhere to the framework of debt sustainability and to recognise that lender liability does not just involve compliance with the sustainability framework, but also entails: taking into consideration the vulnerability of borrowing countries to external shocks; incorporating transparency requirements in borrowing agreements; exercising greater vigilance in ensuring that the borrowing does not contribute to human rights violations or an increase in corruption. Parliament therefore urges the EU to put in place some form of international insolvency procedures or fair and transparent arbitration procedure to deal efficiently and equitably with any future debt crisis. The Commission is also criticised for its lack of initiative to prevent capital flight, which does serious damage to the development of sustainable economic systems in developing countries. It is therefore necessary, as required by the Monterrey Consensus, to close down tax havens , some of which are located within the EU or operate in close connection with Member States. They recall that, according to the World Bank, the illegal component of this capital flight amounts to between 1 000 and 1 600 billion USD each year, half of which comes from developing countries. Therefore, the Commission and the Member States must create measures to promote the global extension of the principle of the automatic exchange of tax information and establish a Code of Conduct on tax evasion, such as that currently being drawn up at the United Nations Economic and Social Council (ECOSOC). Innovative financing mechanisms : while Parliament welcomes the innovative financing mechanisms put forward by the Member States, it asks that these be easy to implement and effective. These instruments should provide for new sources of funding and deploy credit guarantees. At the same time, the Commission is called upon to enhance funding of climate change adaptation measures. MEP stress, in particular, that innovative finance mechanisms should be developed urgently for this purpose, such as levies on aviation and oil trading , as well as by earmarking of auctioning revenues from the EU Emissions Trading System (EU ETS). They also welcome the Commission's proposal to establish a Global Climate Financing Mechanism, based on the principal of frontloading aid to finance mitigation and adaptation measures in developing countries. Until this mechanism enters into force, they call on the EU to earmark at least 25% of future auctioning revenues from the EU ETS to finance climate change adaptation and mitigation measures in developing countries. Micro-credit : MEPs call on the Commission to develop access to finance for small-scale entrepreneurs and farmers, as a means of increasing food production and providing a sustainable solution to the food crisis. Furthermore, the European Investment Bank (EIB) is called upon set up a guarantee fund in support of micro-credit and risk-hedging schemes that respond closely to the needs of local food producers in poorer developing countries. Reforming international systems : lastly, MEPs call on the Council and the Commission to include the European Development Fund in the EU budget at the 2008/2009 Midterm Review, in order to enhance its democratic legitimacy. Regretting the current system of voting rights at the IMF, MEPs call on the Commission and the Member States to demonstrate their interest in double-majority decision-making (shareholders/states) within the institution responsible for international financial stability. The Member States are also called upon to reform the World Bank.
  • date: 2008-09-23T00:00:00 type: End of procedure in Parliament body: EP
links
other
  • body: EC dg: Development commissioner: MICHEL Louis
procedure/dossier_of_the_committee
Old
DEVE/6/60347
New
  • DEVE/6/60347
procedure/legal_basis/0
Rules of Procedure EP 052
procedure/legal_basis/0
Rules of Procedure of the European Parliament EP 052
procedure/legal_basis/1
Rules of Procedure EP 052-p4
procedure/legal_basis/1
Rules of Procedure of the European Parliament EP 052-p2
procedure/subject
Old
  • 6.30 Development cooperation
  • 6.30.02 Financial and technical cooperation and assistance
New
6.30
Development cooperation
6.30.02
Financial and technical cooperation and assistance
procedure/title
Old
Follow-up of the Monterrey Conference of 2002 on Financing for Development
New
Follow-up of the Monterrey Conference of 2002 on financing for development
activities/0/committees/0/rapporteur/0/mepref
545fc57fd1d1c5099c000000
activities/1/committees/0/rapporteur/0/mepref
545fc57fd1d1c5099c000000
committees/0/rapporteur/0/mepref
545fc57fd1d1c5099c000000
activities
  • date: 2008-03-13T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: False committee: BUDG date: 2008-03-12T00:00:00 committee_full: Budgets rapporteur: group: ALDE name: JENSEN Anne E. body: EP responsible: True committee: DEVE date: 2008-01-29T00:00:00 committee_full: Development rapporteur: group: PSE name: BERMAN Thijs body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
  • date: 2008-06-25T00:00:00 body: EP committees: body: EP responsible: False committee: BUDG date: 2008-03-12T00:00:00 committee_full: Budgets rapporteur: group: ALDE name: JENSEN Anne E. body: EP responsible: True committee: DEVE date: 2008-01-29T00:00:00 committee_full: Development rapporteur: group: PSE name: BERMAN Thijs body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON type: Vote in committee, 1st reading/single reading
  • date: 2008-08-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2008-310&language=EN type: Committee report tabled for plenary, single reading title: A6-0310/2008 body: EP type: Committee report tabled for plenary, single reading
  • date: 2008-09-22T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20080922&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2008-09-23T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=15392&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2008-420 type: Decision by Parliament, 1st reading/single reading title: T6-0420/2008 body: EP type: Results of vote in Parliament
committees
  • body: EP responsible: False committee: BUDG date: 2008-03-12T00:00:00 committee_full: Budgets rapporteur: group: ALDE name: JENSEN Anne E.
  • body: EP responsible: True committee: DEVE date: 2008-01-29T00:00:00 committee_full: Development rapporteur: group: PSE name: BERMAN Thijs
  • body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
links
other
  • body: EC dg: Development commissioner: MICHEL Louis
procedure
dossier_of_the_committee
DEVE/6/60347
reference
2008/2050(INI)
title
Follow-up of the Monterrey Conference of 2002 on Financing for Development
legal_basis
stage_reached
Procedure completed
subtype
Initiative
type
INI - Own-initiative procedure
subject