BETA


2016/2241(INI) Enhancing developing countries’ debt sustainability

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead DEVE GOERENS Charles (icon: ALDE ALDE) SZEJNFELD Adam (icon: PPE PPE), FRUNZULICĂ Doru-Claudian (icon: S&D S&D), DEVA Nirj (icon: ECR ECR), SARGENTINI Judith (icon: Verts/ALE Verts/ALE), CORRAO Ignazio (icon: EFDD EFDD)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2018/08/30
   EC - Commission response to text adopted in plenary
Documents
2018/04/17
   EP - Results of vote in Parliament
2018/04/17
   EP - Decision by Parliament
Details

The European Parliament adopted by 384 votes to 253, with 27 abstentions, a resolution on enhancing developing countries’ debt sustainability.

Members recalled that addressing the sovereign debt problems of developing countries is an important element in international cooperation and can contribute to achieving the Sustainable Development Goals (SDGs) in developing countries.

According to the IMF, the median level of debt in sub-Saharan Africa rose sharply, from 34 % of GDP in 2013 to 48 % in 2017. Several countries, including Ethiopia, Ghana and Zambia, have debt levels at or above 50 % of GDP. This constitutes a significant debt burden, when one considers the low tax base in most African countries.

Although debt relief has provided low-income countries with new opportunities, it must be noted that it is a one-off intervention to restore debt sustainability which does not address the root causes of unsustainable debt accumulation. Challenges such as corruption, weak institutions and vulnerability to external shocks must be addressed as a priority

Responsible and predictable borrowing : Parliament stressed that responsible and predictable credit facilities are an essential means of ensuring a dignified future for developing countries. It underlined, conversely, that sustainable debt is a precondition for achieving Agenda 2030. Debt financing should merely be a complement and second-best option to non-debt-creating instruments such as tax and tariff income and official development assistance.

Supporting an effective tax system : domestic resource mobilisation through taxation is the most important source of revenue for financing sustainable development. Members asked the European Union to:

step up its capacity building assistance in developing countries in order to curb illicit financial flows, support an efficient, progressive and transparent tax system in line with good governance principles and increase its assistance to combat corruption and recover stolen assets; actively combat tax havens, tax avoidance and illicit financial flows , which merely increase the debt burden of developing countries, to cooperate with developing countries in order to combat aggressive tax avoidance; help developing countries resist the pressure to engage in tax competition , which would damage the mobilisation of domestic resources for development.

Strategy to combat excessive indebtedness in developing countries : Parliament called on the Commission to draw up, in coordination with all major international actors and the countries concerned, a white paper with a genuine strategy designed to save developing countries from excessive debt by adopting a multilateral approach, specifying the rights, duties and responsibilities of all concerned and considering the institutional provisions best suited to ensuring an equitable and sustainable approach to the debt problem.

Members called for legislation to be drawn up to prevent the granting of loans to manifestly corrupt governments and to sanction any creditors that knowingly give them loans. They urged development stakeholders to assess the impact of debt servicing on the financing capacity of heavily indebted countries in the light of the SDGs.

Debt restructuring mechanism : Parliament stressed the need to resolve the debt crisis through the establishment of an international debt restructuring mechanism.

Member States are called on to act on the mandate adopted in UN General Assembly Resolution 69/319 of 10 September 2015 in order to:

create early warning mechanisms based on reporting of a broader deterioration in debt sustainability; allow, in coordination with the International Monetary Fund, the establishment of a multilateral legal framework for the orderly and predictable restructuring of the sovereign debts of states in order to prevent them from becoming unsustainable and to achieve greater predictability for investors; ensure that the EU supports developing countries in the fight against corruption, criminal activities, tax avoidance and money laundering.

Lastly, Parliament called on the Member States to adopt, on the Commission’s initiative, a regulation based on the Belgian law on combating vulture fund debt speculation. It also called on institutional and private creditors to agree to a debt moratorium in the aftermath of a natural disaster or acute humanitarian crisis, including the occasional arrival of large numbers of immigrants, in order to enable a debtor country to devote all its resources to securing a return to normality.

Documents
2018/04/17
   EP - End of procedure in Parliament
2018/04/16
   EP - Debate in Parliament
2018/03/28
   EP - Committee report tabled for plenary
Details

The Committee on Development adopted the own-initiative report by Charles GOERENS (ALDE, LU) on enhancing developing countries’ debt sustainability.

The report noted that addressing the sovereign debt problems of developing countries is an important element in international cooperation and can contribute to achieving the Sustainable Development Goals (SDGs) in developing countries.

According to the IMF, the median level of debt in sub-Saharan Africa rose sharply, from 34 % of GDP in 2013 to 48 % in 2017. Several countries, including Ethiopia, Ghana and Zambia, have debt levels at or above 50 % of GDP. This constitutes a significant debt burden, when one considers the low tax base in most African countries.

Although debt relief has provided low-income countries with new opportunities, it must be noted that it is a one-off intervention to restore debt sustainability which does not address the root causes of unsustainable debt accumulation. Challenges such as corruption, weak institutions and vulnerability to external shocks must be addressed as a priority.

The report stressed that responsible and predictable credit facilities are an essential means of ensuring a dignified future for developing countries. It underlined, conversely, that sustainable debt is a precondition for achieving Agenda 2030.

The report called on the EU and its Member States to actively combat tax havens, tax avoidance and illicit financial flows, which merely increase the debt burden of developing countries, to cooperate with developing countries in order to combat aggressive tax avoidance, and to seek ways to help developing countries withstand pressures to engage in tax competition, which would damage the mobilisation of domestic revenue for development. It called for legislation to be drawn up to prevent the granting of loans to manifestly corrupt governments and to sanction any creditors that knowingly give them loans.

Moreover, a review of the European Fund for Sustainable Development (EFSD) is called for to include clear criteria on debt sustainability.

Members called on the Member States and other relevant creditor countries to provide more financing for SDG investments and to keep their long-standing promise to provide 0.7% of their GNI as official development assistance.

Stressing that transparency and accountability are essential to supporting responsible sovereign lending and borrowing, Members called on the Member States to build on commitments made in the Addis Ababa Action Agenda and the G20 Operational Guidelines on Sustainable Financing to make lenders more responsible for their loans, on the basis of the existing principles of transparency and accountability that prevail in the extractive industries.

Member States are called on to act on the mandate adopted in UN General Assembly Resolution 69/319 of 10 September 2015 in order to:

create early warning mechanisms based on reporting of a broader deterioration in debt sustainability; allow, in coordination with the International Monetary Fund, the establishment of a multilateral legal framework for the orderly and predictable restructuring of the sovereign debts of states in order to prevent them from becoming unsustainable and to achieve greater predictability for investors; ensure that the EU supports developing countries in the fight against corruption, criminal activities, tax avoidance and money laundering.

Lastly, the report called on the Member States to adopt, on the Commission’s initiative, a regulation based on the Belgian law on combating vulture fund debt speculation. It also called on institutional and private creditors to agree to a debt moratorium in the aftermath of a natural disaster or acute humanitarian crisis, including the occasional arrival of large numbers of immigrants, in order to enable a debtor country to devote all its resources to securing a return to normality.

Documents
2018/03/20
   EP - Vote in committee
2018/01/31
   EP - Amendments tabled in committee
Documents
2018/01/08
   EP - Committee draft report
Documents
2016/11/15
   EP - GOERENS Charles (ALDE) appointed as rapporteur in DEVE
2016/10/06
   EP - Committee referral announced in Parliament

Documents

Votes

A8-0129/2018 - Charles Goerens - § 27/1 17/04/2018 13:46:38.000 #

2018/04/17 Outcome: +: 638, 0: 21, -: 16
DE IT FR ES PL GB RO PT CZ BE HU SE AT BG FI NL EL HR SK LT IE DK SI LV LU CY EE MT ??
Total
90
59
58
50
47
62
30
20
20
19
19
18
18
17
13
24
19
11
11
10
9
11
8
7
6
6
5
5
1
icon: PPE PPE
202

United Kingdom PPE

2

Lithuania PPE

2

Ireland PPE

3

Denmark PPE

For (1)

1

Luxembourg PPE

3

Cyprus PPE

1

Estonia PPE

For (1)

1

Malta PPE

2
icon: S&D S&D
176

Belgium S&D

3

Netherlands S&D

For (2)

2

Croatia S&D

2

Ireland S&D

For (1)

1

Denmark S&D

1

Slovenia S&D

For (1)

1

Latvia S&D

1

Luxembourg S&D

For (1)

1

Cyprus S&D

2

Malta S&D

3
icon: ECR ECR
57

Italy ECR

2

Romania ECR

2

Czechia ECR

2

Bulgaria ECR

2
2

Netherlands ECR

2

Greece ECR

For (1)

1

Croatia ECR

For (1)

1

Slovakia ECR

2

Lithuania ECR

1

Denmark ECR

Against (1)

3

Cyprus ECR

1
icon: ALDE ALDE
58

United Kingdom ALDE

1

Romania ALDE

2

Portugal ALDE

1

Sweden ALDE

2

Austria ALDE

For (1)

1

Croatia ALDE

2

Ireland ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Latvia ALDE

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3
icon: Verts/ALE Verts/ALE
50

Italy Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Hungary Verts/ALE

For (1)

1

Austria Verts/ALE

3

Finland Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Croatia Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Slovenia Verts/ALE

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1

Latvia Verts/ALE

1

Luxembourg Verts/ALE

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1

Estonia Verts/ALE

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1
icon: GUE/NGL GUE/NGL
45

France GUE/NGL

2

United Kingdom GUE/NGL

1

Czechia GUE/NGL

2

Sweden GUE/NGL

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1

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1

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3

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For (1)

1

Cyprus GUE/NGL

2
icon: ENF ENF
28

Germany ENF

For (1)

1

Italy ENF

Abstain (2)

2
2

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1

Belgium ENF

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1

Netherlands ENF

3
icon: EFDD EFDD
38

Germany EFDD

Abstain (1)

1

France EFDD

3

Poland EFDD

1

Czechia EFDD

Abstain (1)

1

Sweden EFDD

2

Lithuania EFDD

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1
icon: NI NI
19

Germany NI

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2

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2

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3

Denmark NI

1

NI

For (1)

1

A8-0129/2018 - Charles Goerens - § 27/2 17/04/2018 13:46:53.000 #

2018/04/17 Outcome: +: 362, -: 300, 0: 11
IT ES FR DE SE PT FI LT BE CY IE EE DK EL ?? MT RO LU AT BG HR CZ SI NL LV GB SK HU PL
Total
57
49
57
90
19
20
13
10
18
6
9
5
11
19
1
5
30
6
18
17
11
20
8
24
7
62
12
19
48
icon: S&D S&D
175

Belgium S&D

3

Cyprus S&D

2

Ireland S&D

For (1)

1

Denmark S&D

1

Malta S&D

3

Luxembourg S&D

For (1)

1

Croatia S&D

2

Slovenia S&D

For (1)

1

Netherlands S&D

For (2)

2

Latvia S&D

1
icon: Verts/ALE Verts/ALE
47

Italy Verts/ALE

For (1)

1

Finland Verts/ALE

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1

Lithuania Verts/ALE

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1

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1

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1

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1

Luxembourg Verts/ALE

For (1)

1

Austria Verts/ALE

3

Croatia Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Latvia Verts/ALE

1

United Kingdom Verts/ALE

5

Hungary Verts/ALE

For (1)

1
icon: ALDE ALDE
58

Sweden ALDE

2

Portugal ALDE

1

Ireland ALDE

For (1)

1

Estonia ALDE

3

Romania ALDE

2

Luxembourg ALDE

For (1)

1

Austria ALDE

For (1)

1

Croatia ALDE

2

Czechia ALDE

4

Slovenia ALDE

For (1)

1

Latvia ALDE

1

United Kingdom ALDE

1
icon: GUE/NGL GUE/NGL
45

France GUE/NGL

2

Sweden GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Cyprus GUE/NGL

2

Denmark GUE/NGL

For (1)

1

Czechia GUE/NGL

2

Netherlands GUE/NGL

3

United Kingdom GUE/NGL

1
icon: ENF ENF
28

Italy ENF

Against (2)

2

Germany ENF

For (1)

1

Belgium ENF

Against (1)

1

Netherlands ENF

3

United Kingdom ENF

Against (1)

1

Poland ENF

2
icon: NI NI
19

France NI

2

Germany NI

2

Denmark NI

1

NI

For (1)

1

United Kingdom NI

Against (2)

Abstain (1)

3
icon: EFDD EFDD
37

France EFDD

3

Germany EFDD

Against (1)

1

Sweden EFDD

2

Lithuania EFDD

For (1)

1

Czechia EFDD

Against (1)

1

Poland EFDD

1
icon: ECR ECR
58

Italy ECR

2

Finland ECR

2

Lithuania ECR

Against (1)

1
3

Cyprus ECR

1

Greece ECR

For (1)

1

Romania ECR

2

Bulgaria ECR

2

Croatia ECR

Against (1)

1

Czechia ECR

2

Netherlands ECR

For (1)

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Slovakia ECR

2
icon: PPE PPE
204

Finland PPE

3

Lithuania PPE

2

Belgium PPE

For (1)

4

Cyprus PPE

Against (1)

1

Ireland PPE

3

Estonia PPE

Against (1)

1

Denmark PPE

Against (1)

1

Malta PPE

2

Luxembourg PPE

3

United Kingdom PPE

2

A8-0129/2018 - Charles Goerens - résolution 17/04/2018 13:49:28.000 #

2018/04/17 Outcome: +: 384, -: 253, 0: 27
FR IT ES DE BE SE PT AT EL IE FI LT LU EE CY ?? MT BG GB RO NL SI DK HR CZ LV SK HU PL
Total
56
58
50
88
19
19
20
17
18
9
11
10
5
5
6
1
5
17
60
30
24
8
11
11
19
7
11
19
48
icon: S&D S&D
173

Ireland S&D

For (1)

1

Cyprus S&D

2

Malta S&D

3

Netherlands S&D

For (2)

2

Slovenia S&D

For (1)

1

Denmark S&D

1

Croatia S&D

2

Latvia S&D

1
icon: Verts/ALE Verts/ALE
48

Italy Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Austria Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Slovenia Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Hungary Verts/ALE

For (1)

1
icon: ALDE ALDE
58

Germany ALDE

4

Sweden ALDE

2

Portugal ALDE

1

Austria ALDE

For (1)

1

Ireland ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3

Bulgaria ALDE

Abstain (1)

4

United Kingdom ALDE

1

Romania ALDE

2

Slovenia ALDE

For (1)

1

Denmark ALDE

3

Croatia ALDE

2

Czechia ALDE

4

Latvia ALDE

1
icon: GUE/NGL GUE/NGL
44

France GUE/NGL

2

Sweden GUE/NGL

For (1)

1

Portugal GUE/NGL

For (1)

4

Finland GUE/NGL

For (1)

1

Cyprus GUE/NGL

2

United Kingdom GUE/NGL

1

Netherlands GUE/NGL

3

Denmark GUE/NGL

For (1)

1

Czechia GUE/NGL

1
icon: ENF ENF
28

Italy ENF

Abstain (2)

2

Germany ENF

Against (1)

1

Belgium ENF

Against (1)

1

United Kingdom ENF

Against (1)

1

Netherlands ENF

3
2
icon: NI NI
19

France NI

2

Germany NI

2

NI

For (1)

1

United Kingdom NI

3

Denmark NI

1

Hungary NI

3
icon: EFDD EFDD
36

France EFDD

Abstain (1)

3

Germany EFDD

Against (1)

1

Sweden EFDD

2

Lithuania EFDD

For (1)

1

Czechia EFDD

Against (1)

1

Poland EFDD

1
icon: ECR ECR
56

Italy ECR

2
3

Greece ECR

For (1)

1

Finland ECR

2

Lithuania ECR

Against (1)

1

Cyprus ECR

Abstain (1)

1

Bulgaria ECR

2

Romania ECR

2

Netherlands ECR

2

Croatia ECR

Against (1)

1

Czechia ECR

2

Slovakia ECR

2
icon: PPE PPE
200

Belgium PPE

Against (1)

3

Austria PPE

For (1)

Abstain (1)

5

Ireland PPE

For (1)

Against (2)

3

Finland PPE

Against (1)

2

Lithuania PPE

2

Luxembourg PPE

Against (1)

3

Estonia PPE

Against (1)

1

Cyprus PPE

Against (1)

1

Malta PPE

2

United Kingdom PPE

For (1)

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2
5

Denmark PPE

Against (1)

1
AmendmentsDossier
130 2016/2241(INI)
2018/01/31 DEVE 130 amendments...
source: 616.631

History

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

events/3/docs
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  • body: EC dg: International Cooperation and Development commissioner: MIMICA Neven
committees
  • type: Responsible Committee body: EP associated: False committee_full: Development committee: DEVE date: 2016-11-15T00:00:00 rapporteur: name: GOERENS Charles group: Alliance of Liberals and Democrats for Europe abbr: ALDE shadows: name: SZEJNFELD Adam group: European People's Party (Christian Democrats) abbr: PPE name: FRUNZULICĂ Doru-Claudian group: Progressive Alliance of Socialists and Democrats abbr: S&D name: DEVA Nirj group: European Conservatives and Reformists abbr: ECR name: SÁNCHEZ CALDENTEY Lola group: European United Left - Nordic Green Left abbr: GUE/NGL name: SARGENTINI Judith group: Greens/European Free Alliance abbr: Verts/ALE name: CORRAO Ignazio group: Europe of Freedom and Direct Democracy abbr: EFDD
docs
  • date: 2018-01-08T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE601.260 title: PE601.260 type: Committee draft report body: EP
  • date: 2018-01-31T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE616.631 title: PE616.631 type: Amendments tabled in committee body: EP
  • date: 2018-08-30T00:00:00 docs: url: /oeil/spdoc.do?i=30986&j=0&l=en title: SP(2018)401 type: Commission response to text adopted in plenary
events
  • date: 2016-10-06T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2018-03-20T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2018-03-28T00:00:00 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=A8-2018-0129&language=EN title: A8-0129/2018 summary: The Committee on Development adopted the own-initiative report by Charles GOERENS (ALDE, LU) on enhancing developing countries’ debt sustainability. The report noted that addressing the sovereign debt problems of developing countries is an important element in international cooperation and can contribute to achieving the Sustainable Development Goals (SDGs) in developing countries. According to the IMF, the median level of debt in sub-Saharan Africa rose sharply, from 34 % of GDP in 2013 to 48 % in 2017. Several countries, including Ethiopia, Ghana and Zambia, have debt levels at or above 50 % of GDP. This constitutes a significant debt burden, when one considers the low tax base in most African countries. Although debt relief has provided low-income countries with new opportunities, it must be noted that it is a one-off intervention to restore debt sustainability which does not address the root causes of unsustainable debt accumulation. Challenges such as corruption, weak institutions and vulnerability to external shocks must be addressed as a priority. The report stressed that responsible and predictable credit facilities are an essential means of ensuring a dignified future for developing countries. It underlined, conversely, that sustainable debt is a precondition for achieving Agenda 2030. The report called on the EU and its Member States to actively combat tax havens, tax avoidance and illicit financial flows, which merely increase the debt burden of developing countries, to cooperate with developing countries in order to combat aggressive tax avoidance, and to seek ways to help developing countries withstand pressures to engage in tax competition, which would damage the mobilisation of domestic revenue for development. It called for legislation to be drawn up to prevent the granting of loans to manifestly corrupt governments and to sanction any creditors that knowingly give them loans. Moreover, a review of the European Fund for Sustainable Development (EFSD) is called for to include clear criteria on debt sustainability. Members called on the Member States and other relevant creditor countries to provide more financing for SDG investments and to keep their long-standing promise to provide 0.7% of their GNI as official development assistance. Stressing that transparency and accountability are essential to supporting responsible sovereign lending and borrowing, Members called on the Member States to build on commitments made in the Addis Ababa Action Agenda and the G20 Operational Guidelines on Sustainable Financing to make lenders more responsible for their loans, on the basis of the existing principles of transparency and accountability that prevail in the extractive industries. Member States are called on to act on the mandate adopted in UN General Assembly Resolution 69/319 of 10 September 2015 in order to: create early warning mechanisms based on reporting of a broader deterioration in debt sustainability; allow, in coordination with the International Monetary Fund, the establishment of a multilateral legal framework for the orderly and predictable restructuring of the sovereign debts of states in order to prevent them from becoming unsustainable and to achieve greater predictability for investors; ensure that the EU supports developing countries in the fight against corruption, criminal activities, tax avoidance and money laundering. Lastly, the report called on the Member States to adopt, on the Commission’s initiative, a regulation based on the Belgian law on combating vulture fund debt speculation. It also called on institutional and private creditors to agree to a debt moratorium in the aftermath of a natural disaster or acute humanitarian crisis, including the occasional arrival of large numbers of immigrants, in order to enable a debtor country to devote all its resources to securing a return to normality.
  • date: 2018-04-16T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20180416&type=CRE title: Debate in Parliament
  • date: 2018-04-17T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=30986&l=en title: Results of vote in Parliament
  • date: 2018-04-17T00:00:00 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=P8-TA-2018-0104 title: T8-0104/2018 summary: The European Parliament adopted by 384 votes to 253, with 27 abstentions, a resolution on enhancing developing countries’ debt sustainability. Members recalled that addressing the sovereign debt problems of developing countries is an important element in international cooperation and can contribute to achieving the Sustainable Development Goals (SDGs) in developing countries. According to the IMF, the median level of debt in sub-Saharan Africa rose sharply, from 34 % of GDP in 2013 to 48 % in 2017. Several countries, including Ethiopia, Ghana and Zambia, have debt levels at or above 50 % of GDP. This constitutes a significant debt burden, when one considers the low tax base in most African countries. Although debt relief has provided low-income countries with new opportunities, it must be noted that it is a one-off intervention to restore debt sustainability which does not address the root causes of unsustainable debt accumulation. Challenges such as corruption, weak institutions and vulnerability to external shocks must be addressed as a priority Responsible and predictable borrowing : Parliament stressed that responsible and predictable credit facilities are an essential means of ensuring a dignified future for developing countries. It underlined, conversely, that sustainable debt is a precondition for achieving Agenda 2030. Debt financing should merely be a complement and second-best option to non-debt-creating instruments such as tax and tariff income and official development assistance. Supporting an effective tax system : domestic resource mobilisation through taxation is the most important source of revenue for financing sustainable development. Members asked the European Union to: step up its capacity building assistance in developing countries in order to curb illicit financial flows, support an efficient, progressive and transparent tax system in line with good governance principles and increase its assistance to combat corruption and recover stolen assets; actively combat tax havens, tax avoidance and illicit financial flows , which merely increase the debt burden of developing countries, to cooperate with developing countries in order to combat aggressive tax avoidance; help developing countries resist the pressure to engage in tax competition , which would damage the mobilisation of domestic resources for development. Strategy to combat excessive indebtedness in developing countries : Parliament called on the Commission to draw up, in coordination with all major international actors and the countries concerned, a white paper with a genuine strategy designed to save developing countries from excessive debt by adopting a multilateral approach, specifying the rights, duties and responsibilities of all concerned and considering the institutional provisions best suited to ensuring an equitable and sustainable approach to the debt problem. Members called for legislation to be drawn up to prevent the granting of loans to manifestly corrupt governments and to sanction any creditors that knowingly give them loans. They urged development stakeholders to assess the impact of debt servicing on the financing capacity of heavily indebted countries in the light of the SDGs. Debt restructuring mechanism : Parliament stressed the need to resolve the debt crisis through the establishment of an international debt restructuring mechanism. Member States are called on to act on the mandate adopted in UN General Assembly Resolution 69/319 of 10 September 2015 in order to: create early warning mechanisms based on reporting of a broader deterioration in debt sustainability; allow, in coordination with the International Monetary Fund, the establishment of a multilateral legal framework for the orderly and predictable restructuring of the sovereign debts of states in order to prevent them from becoming unsustainable and to achieve greater predictability for investors; ensure that the EU supports developing countries in the fight against corruption, criminal activities, tax avoidance and money laundering. Lastly, Parliament called on the Member States to adopt, on the Commission’s initiative, a regulation based on the Belgian law on combating vulture fund debt speculation. It also called on institutional and private creditors to agree to a debt moratorium in the aftermath of a natural disaster or acute humanitarian crisis, including the occasional arrival of large numbers of immigrants, in order to enable a debtor country to devote all its resources to securing a return to normality.
  • date: 2018-04-17T00:00:00 type: End of procedure in Parliament body: EP
procedure
reference
2016/2241(INI)
title
Enhancing developing countries’ debt sustainability
subject
type
INI - Own-initiative procedure
subtype
Initiative
legal_basis
Rules of Procedure EP 54
stage_reached
Procedure completed
dossier_of_the_committee
DEVE/8/07996