Progress: Procedure completed
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | DEVE | GOERENS Charles ( ALDE) | SZEJNFELD Adam ( PPE), FRUNZULICĂ Doru-Claudian ( S&D), DEVA Nirj ( ECR), SARGENTINI Judith ( Verts/ALE), CORRAO Ignazio ( EFDD) |
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Events
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.
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
- Commission response to text adopted in plenary: SP(2018)401
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T8-0104/2018
- Debate in Parliament: Debate in Parliament
- Committee report tabled for plenary: A8-0129/2018
- Amendments tabled in committee: PE616.631
- Committee draft report: PE601.260
- Committee draft report: PE601.260
- Amendments tabled in committee: PE616.631
- Commission response to text adopted in plenary: SP(2018)401
Activities
- Notis MARIAS
Plenary Speeches (2)
- Doru-Claudian FRUNZULICĂ
Plenary Speeches (1)
- Jean-Luc SCHAFFHAUSER
Plenary Speeches (1)
- Adam SZEJNFELD
Plenary Speeches (1)
- Bogdan Brunon WENTA
Plenary Speeches (1)
Votes
A8-0129/2018 - Charles Goerens - § 27/1 17/04/2018 13:46:38.000 #
A8-0129/2018 - Charles Goerens - § 27/2 17/04/2018 13:46:53.000 #
A8-0129/2018 - Charles Goerens - résolution 17/04/2018 13:49:28.000 #
Amendments | Dossier |
130 |
2016/2241(INI)
2018/01/31
DEVE
130 amendments...
Amendment 1 #
Motion for a resolution Citation 5 a (new) - having regard to the UN General Assembly Resolution 'Towards the establishment of a multilateral legal framework for sovereign debt restructurings' of 9 September 2014,
Amendment 10 #
Motion for a resolution Recital E a (new) E a. whereas, according to the IMF, the median level of debt in Sub-Saharan Africa had risen sharply, from 34% of GDP in 2013 to 48% in 2017;
Amendment 100 #
Motion for a resolution Paragraph 12 a (new) 12 a. Deems that transparency and accountability are essential to supporting responsible sovereign lending and borrowing; to this end, calls on Member States of the European Union to build upon commitments made in the Addis Ababa Action Agenda, and the G20 Operational Guidelines on Sustainable Financing, to make lenders more responsible of their loans, based on existing principles of transparency and accountability that prevails in the extractive industries (IETA) or by exploring the feasibility of mandatory reporting of all loans by public and private creditors to developing countries in a public database register;
Amendment 101 #
Motion for a resolution Paragraph 12 a (new) 12 a. Considers transparency as critical to supporting responsible sovereign lending and borrowing, and calls on Member States of the European Union to build upon commitments made in the Addis Ababa Action Agenda, and the G20 Operational Guidelines on Sustainable Financing, by: promoting the public availability of data on sovereign debt, including contingent liabilities, and collation of this data in a centraliced public registry, and systematically making public information on their lending activities to developing countries;
Amendment 102 #
Motion for a resolution Paragraph 12 b (new) 12 b. Stresses the need to settle a multilateral regulatory model to address odious and illegitimate debts; to this end, takes the view that debt restructuring operation should come along an independent debt audit as a way to differentiate illegitimate and odious lending, that should be cancelled;
Amendment 103 #
Motion for a resolution Paragraph 13 13.
Amendment 104 #
Motion for a resolution Paragraph 13 13.
Amendment 105 #
Motion for a resolution Paragraph 13 a (new) 13 a. Stresses the importance of consistency of actions taken at the IMF level and in the UN context and of coordination of positions among Member States in the best possible way;
Amendment 106 #
Motion for a resolution Paragraph 13 a (new) 13a. Calls for a reform of the international financial architecture; considers that the voices of developing countries should be heard more clearly in the context of global governance;
Amendment 107 #
Motion for a resolution Paragraph 14 – introductory part 14.
Amendment 108 #
Motion for a resolution Paragraph 14 – introductory part 14. Calls on the EU Member States to
Amendment 109 #
Motion for a resolution Paragraph 14 – introductory part 14. Stresses the need to resolve debt crisis in a fair, speedy and sustainable manner through the setting-up of an international debt workout mechanism, that build upon the UNCTAD roadmap on sovereign debt work out and the idea of the so-called Stiglitz Commission of establishing an International Debt Restructuring Court (IDRC); Calls on the EU Member States to act on the mandate adopted in Resolution A/RES/69/319 of 10 September 2015 in order to:
Amendment 11 #
Motion for a resolution Recital E b (new) E b. whereas several countries, including Ethiopia, Ghana and Zambia, have debt levels at or above 50% of GDP - which constitutes a significant debt burden, taking into account the low tax base in most African countries;
Amendment 110 #
Motion for a resolution Paragraph 14 – point a Amendment 111 #
Motion for a resolution Paragraph 14 – point a (a) create
Amendment 112 #
Motion for a resolution Paragraph 14 – point a (a) create a permanent crisis management mechanism for the developing countries, which can be activated promptly and over the long term;
Amendment 113 #
Motion for a resolution Paragraph 14 – point b Amendment 114 #
Motion for a resolution Paragraph 14 – point b (b) allow, in coordination with the IMF, the establishment of a multilateral legal framework for the restructuring of sovereign debt in order to prevent it becoming unsustainable and to achieve greater predictability for investors;
Amendment 115 #
Motion for a resolution Paragraph 14 – point b (b) allow the establishment of a multilateral legal framework for the orderly and predictable restructuring of sovereign debt in order to prevent it becoming unsustainable and to achieve greater predictability for investors;
Amendment 116 #
Motion for a resolution Paragraph 14 – point b (b) allow the establishment of a multilateral legal framework for the restructuring of the sovereign debt of States in order to prevent it becoming unsustainable and to achieve greater predictability for investors; calls for fair representation of developing countries in the decision-making bodies of international financial institutions;
Amendment 117 #
Motion for a resolution Paragraph 14 – point b a (new) (ba) Underlines that, in order to ensure sustainability, sovereign debt restructuring negotiations should be completed without delay and efficiently and should lead to a stabilisation of the debtor State’s debt, while safeguarding its sustainable development;
Amendment 118 #
Motion for a resolution Paragraph 14 – point b a (new) (ba) Urges the EU to support developing countries in the fight against corruption, criminal activities, tax avoidance and money laundering;
Amendment 119 #
Motion for a resolution Paragraph 14 a (new) 14 a. Calls for the Commission and EU Member States to work in international fora and together with the private sector to develop a rules framework that will ensure full transparency of the conditions and ownership of loans made to developing countries, such as the Transparent Lending Covenant being discussed by some financial institutions;
Amendment 12 #
Motion for a resolution Recital E c (new) E c. whereas debt-service as a percentage of government spending has considerably increased since 2013 which substantially reduces opportunities for public investment;
Amendment 120 #
Motion for a resolution Paragraph 14 a (new) 14a. Points to the role of the ACP-EU Joint Parliamentary Assembly in promoting political dialogue, notably as regards exchanges of best practices and good governance, including fiscal governance;
Amendment 121 #
Motion for a resolution Paragraph 14 b (new) 14 b. Regrets the pressure put on states such as Tunisia to encourage them not to conduct public audits of the origins and conditions of their debts; urges the EU to work with other donors and international institutions such as the IMF to protect and encourage the right of states to conduct public debt audits;
Amendment 122 #
Motion for a resolution Paragraph 15 15.
Amendment 123 #
Motion for a resolution Paragraph 15 15. Urges the adoption of a rule applicable in cases of impending insolvency, depriving creditors of the right to initiate legal proceedings against a debtor country if the loan in question was not duly authorised by its national parliament, so that such authorisation by the national representation eliminates any risk of odious debt which could be inflicted on the population in an insolvent state;
Amendment 124 #
Motion for a resolution Paragraph 16 Amendment 125 #
Motion for a resolution Paragraph 16 16. Calls on the EU Member States to adopt, on the Commission’s initiative, a regulation based on Belgian legislation seeking to prevent speculation and litigation on sovereign debt by vulture funds;
Amendment 126 #
Motion for a resolution Paragraph 16 16. Calls on the EU Member States to
Amendment 127 #
Motion for a resolution Paragraph 16 a (new) 16 a. Notes the increased promotion of public-private partnerships (PPPs) and blending under instruments such as the EU External Investment Plan and the G20 Compact with Africa to support the realisation of the SDGs; highlights the importance of ensuring safeguards are in place to prevent contingent government liabilities from undermining the debt sustainability of developing countries; calls on Member States of the European Union when developing agreements with partner countries under these instruments, to ensure objective comparison of PPP financing with alternative forms of financing, including public borrowing, and which take into consideration the full fiscal risks over the lifetime of PPP projects; notes that EU support to countries in high risk on debt distress should give preference to grant financing;
Amendment 128 #
Motion for a resolution Paragraph 17 17. Calls 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;
Amendment 129 #
Motion for a resolution Paragraph 17 17. Calls on institutional and private creditors to agree to a debt moratorium in the aftermath of a natural disaster or acute humanitarian crisis, in order to enable a debtor country to devote
Amendment 13 #
Motion for a resolution Recital G G. whereas the composition of developing country debt has evolved in line with the growing importance of private creditors and trading conditions
Amendment 130 #
Motion for a resolution Paragraph 17 a (new) 17a. Calls on the EU, in future negotiations on the 'Post Cotonou' , to include measures against tax avoidance, corruption, tax evasion and money laundering.
Amendment 14 #
Motion for a resolution Recital G G. whereas the composition of developing country debt has evolved in line with the growing importance of private creditors and trading conditions and increased exposure to financial market volatility, which has an impact on the sustainability of debt; whereas, while debt denominated in the national currency effectively eliminates exchange-rate risks, such an option may prove to be unfavourable or untenable where backed by insufficient domestic capital reserves;
Amendment 15 #
Motion for a resolution Recital G G. whereas the composition of developing country debt has evolved in line with the growing importance of private creditors and trading conditions and increased exposure to financial market volatility; whereas
Amendment 16 #
Motion for a resolution Recital H H. whereas threats to debt sustainability include not only deteriorating terms of trade, natural and man-made disasters, adverse trends and volatility on international financial markets, but also irresponsible lending and borrowing, the mismanagement of public finances, the misuse of funds, and corruption; whereas the more effective mobilisation of domestic resources offers strong prospects of improved debt sustainability;
Amendment 17 #
Motion for a resolution Recital H H. whereas threats to debt sustainability include not only deteriorating terms of trade, natural and man-made disasters, adverse trends and volatility on international financial markets, but also irresponsible lending and borrowing, the mismanagement of public finances and corruption; whereas the more
Amendment 18 #
Motion for a resolution Recital H a (new) Ha. whereas it is necessary to help boost the capacities of tax administrations and the transfer of knowledge in partner countries;
Amendment 19 #
Motion for a resolution Recital I I. whereas, while the UNCTAD principles for responsible sovereign lending and borrowing and the G20 operational guidelines for sustainable financing are undeniably useful for the formulation of regulatory framework provisions, priority must be given to ending irresponsible practices through the introduction of transparent principles, suitable deterrents and, where justified, penalties as well;
Amendment 2 #
Motion for a resolution Citation 8 a (new) - having regard to the UNCTAD roadmap on Sovereign DebtWorkouts (April 2015);
Amendment 20 #
Motion for a resolution Recital I I. whereas, while the UNCTAD principles for responsible sovereign lending and borrowing and the G20 operational guidelines for sustainable financing are undeniably useful for the formulation of regulatory framework provisions, priority must be given to ending irresponsible practices through the introduction of suitable and binding deterrents and penalties;
Amendment 21 #
Motion for a resolution Recital I I. whereas, while the UNCTAD principles for responsible sovereign lending and borrowing and the G20 operational guidelines for sustainable financing are undeniably useful for the formulation of regulatory framework provisions, priority must be given to ending irresponsible practices through the introduction of
Amendment 22 #
Motion for a resolution Recital J J. whereas national debt sustainability depends on not only debt stock but also on other factors, such as explicit and implicit financial guarantees (contingent liabilities) issued by the countries concerned; whereas public-private partnerships often entail related guarantees, possibly accompanied by significant risks of future bank bailouts; whereas the EFSD aims to provide such guarantees for fragile countries;
Amendment 23 #
Motion for a resolution Recital J a (new) Ja. whereas the debt sustainability analysis should not focus solely on economic considerations, such as the prospects for future economic growth of the debtor State and its ability to service its debts, but must take into consideration the impact of the debt burden on the country’s capacity to respect all human rights;
Amendment 24 #
Motion for a resolution Recital J a (new) J a. Whereas the increasing use of public-private partnerships in developing countries under the EU External Investment Plan and the G20 Compact with Africa could add to state indebtedness; whereas PPP investors are protected by bilateral investment treaties, notably their investor-to-state dispute settlement mechanisms, that enable them to litigate against the host states;
Amendment 25 #
Motion for a resolution Recital J a (new) Ja. whereas debt sustainability goes hand in hand with respect for human rights;
Amendment 26 #
Motion for a resolution Recital K K. whereas odious debts contracted by regimes parties to facilitate corrupt practices or transactions known by creditors to be illicit are resulting in a substantial burden for the p
Amendment 27 #
Motion for a resolution Recital K K. whereas odious debts contracted by regimes parties to facilitate corrupt practices or transactions known by creditors to be illicit are resulting in a substantial burden for the
Amendment 28 #
Motion for a resolution Recital K a (new) K a. whereas transparency of loans made to the governments of developing countries is essential for ensuring accountability of lending; whereas a lack of transparency was a key factor in aiding the irresponsible loans made to Mozambique, which were arranged without serious checks on the ability of the country to repay them and subsequently hidden from the financial markets and the Mozambique people.
Amendment 29 #
Motion for a resolution Recital K a (new) Ka. whereas, according to Sack's doctrine, odious debt contracted by such regimes from lenders who are aware of their nature is not legitimate and whereas people cannot be obliged to pay it off;
Amendment 3 #
Motion for a resolution Recital –A (new) -A. whereas 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;
Amendment 30 #
Motion for a resolution Recital L L. whereas the mobilisation of domestic resources is being hampered by tax evasion and harmful tax competition and by the transfer of transnational corporate profits in particular; whereas the OECD base erosion and profit shifting (BEPS) initiative is a welcome but insufficient response to this situation; whereas there is a need to set-up of an intergovernmental body for tax cooperation under the auspices of the UN to enable developing countries to participate equally in the global reform of existing international tax rules ;
Amendment 31 #
Motion for a resolution Recital L L. whereas the mobilisation of domestic resources is being hampered by the transfer of transnational corporate profits in particular; whereas the OECD base erosion and profit shifting (BEPS) initiative is a welcome but insufficient response to this situation; whereas the UN still lacks an intergovernmental tax body to negotiate global tax agreements in a fully inclusive manner, as called for by the European Parliament in its resolution of 6 July 2016 on tax rulings and other measures similar in nature or effect;
Amendment 32 #
Motion for a resolution Recital L L. whereas the mobilisation of domestic resources is being hampered by the transfer of transnational corporate profits in particular; whereas the OECD
Amendment 33 #
Motion for a resolution Recital M a (new) M a. Whereas the fulfilment of Agenda 2030 and the Addis Ababa Action Agenda entails considering new SDGs financing options, such as the setting-up of financial transaction taxes and foreign currency transaction tax;whereas according to the estimations of the Bank for International Settlement (BIS), a foreign currency transaction tax of 0.1 percent would easily finance the SDGs in all LICs and LMICs[1]. [1] « Revisiting Debt Sustainability in Africa. Background Paper for UNCTAD’s 2016 Economic Development in Africa Report: “Debt Dynamics and Development Finance in Africa”.
Amendment 34 #
Motion for a resolution Recital M a (new) Ma. having regard to the essential role that regional organisations must play in carrying out international tax audits, in accordance with the principles of subsidiarity and complementarity;
Amendment 35 #
Motion for a resolution Recital M b (new) Mb. having regard to the need to tackle illicit financial flows in order to eliminate them definitively by 2030, inter alia by combating tax evasion and by stepping up international cooperation by facilitating the disclosure of tax data to competent authorities and tax transparency in countries both of origin and of destination;
Amendment 36 #
Motion for a resolution Recital N N. whereas existing debt service default proceedings for countries differ fundamentally from insolvency proceedings for businesses falling within national jurisdictions, since no provision is made for impartial arbitration before a court of law; whereas short-term loans, subject to terms and conditions and disbursed in tranches, are provided by the IMF, whose mission is to ensure the stability of the international financial system; whereas the Paris Club of creditor
Amendment 37 #
Motion for a resolution Recital N N. whereas existing debt service default proceedings for countries differ fundamentally from insolvency proceedings for businesses falling within national jurisdictions, since no provision is made for impartial arbitration before a court of law; whereas short-term loans, subject to terms and conditions and disbursed in tranches, are provided by the IMF, whose mission is to ensure the stability of the international financial system; whereas the Paris Club of creditor countries takes decisions regarding debt relief, while private creditors are represented by the London Club, through which they are able to coordinate their actions; whereas
Amendment 38 #
Motion for a resolution Recital N N. whereas existing debt service default proceedings for countries differ fundamentally from insolvency proceedings for businesses falling within national jurisdictions, since no provision is made for impartial arbitration before a court of law; whereas short-term loans, subject to terms and conditions and disbursed in tranches, are provided by the IMF, whose mission is to ensure the stability of the international financial system; whereas the Paris Club of creditor countries takes decisions regarding debt relief, while private creditors are represented by the London Club, through which they are able to coordinate their actions; whereas
Amendment 39 #
Motion for a resolution Recital N a (new) N a. whereas the IMF remains the principal forum for discussing restructuring sovereign debt issues, with significant influence over the European Union and its Member States;
Amendment 4 #
Motion for a resolution Recital B B. whereas
Amendment 40 #
Motion for a resolution Recital O O. whereas vulture funds
Amendment 41 #
Motion for a resolution Recital O O. whereas vulture funds targeting distressed debtors and interfering with the debt restructuring process should
Amendment 42 #
Motion for a resolution Recital O a (new) O a. whereas 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 doesn't address the root causes of unsustainable debt accumulation and challenges - such as corruption, weak institutions, vulnerability to external shocks - must be primarily addressed;
Amendment 43 #
Motion for a resolution Recital O a (new) Oa. whereas, under international law, vulture funds should not take precedence over the right of the State to protect its population;
Amendment 44 #
Motion for a resolution Paragraph 1 1. Points out that responsible and predictable credit facilities are
Amendment 45 #
Motion for a resolution Paragraph 1 1. Points out that credit facilities
Amendment 46 #
Motion for a resolution Paragraph 1 1. Points out that credit facilities are an essential means of ensuring
Amendment 47 #
Motion for a resolution Paragraph 1 1. Points out that credit facilities are an essential means of ensuring a dignified future for developing countries; emphasises that access to international financial markets enables developing countries to raise funds with a view to achieving development goals;
Amendment 48 #
Motion for a resolution Paragraph 1 1. Points out that credit facilities are an essential means of ensuring a dignified future for developing countries; conversely, underlines that sustainable debt is a precondition for achieving Agenda 2030; henceforth, believes that SDG implementation requires the setting- up of effective institutions for debt crisis prevention and resolution;
Amendment 49 #
Motion for a resolution Paragraph 1 1. Points out that credit facilities are an essential means of ensuring a dignified future for developing countries, but notes that debt financing should just be a complement and second best option to non debt-creating instruments such as ODA, tax and tariff income as debt financing has inherent and substantial crisis risks which require that adequate institutions for the prevention and resolution of debt crises are put in place;
Amendment 5 #
Motion for a resolution Recital C a (new) Ca. whereas these methods are not sufficient to put an end to the debt crisis;
Amendment 50 #
Motion for a resolution Paragraph 1 a (new) 1 a. Notes with concern that lending to impoverished countries increased dramatically from 2008; fears a cycle of new debt crisis, stresses the need for more transparency, better regulation of lenders, tax justice and to enabling countries to be less dependent on commodity exports;
Amendment 51 #
Motion for a resolution Paragraph 1 a (new) 1a. Points out that borrowing is an important way of supporting investment, which is vital in order to achieve sustainable development, including the Sustainable Development Goals (SDGs);
Amendment 52 #
Motion for a resolution Paragraph 2 2. Takes the view that credit facilities are inextricably linked to other forms of development funding, including earnings from trade, tax revenue and remittances from migrants to developing countries, as well as official development aid; in particular, recalls that domestic resources mobilisation through taxation is the most important source of revenue for financing sustainable development; to these ends, urges the EU to step up its capacity building assistance in developing countries to curb illicit financial flows, to support an efficient, progressive and transparent tax system in line with good governance principles as well as to increase its assistance to combat corruption and recover stolen asset;
Amendment 53 #
Motion for a resolution Paragraph 2 2. Takes the view that credit facilities are inextricably linked to other forms of development funding, including earnings from trade, tax revenue
Amendment 54 #
Motion for a resolution Paragraph 2 a (new) 2a. Underlines that ODA should be reviewed in order for it to be more focused on developing countries, as opposed to middle-income countries;
Amendment 55 #
Motion for a resolution Paragraph 3 3. Is concerned at the substantial increase in both private and public debt in many developing countries where population growth is rapid and the harmful effect thereof on their ability to finance investment expenditure for health, education, the economy and infrastructure;
Amendment 56 #
Motion for a resolution Paragraph 3 3. Is concerned at the substantial increase in both private and public debt in many developing countries and the harmful effect thereof on their ability to finance investment expenditure for health, education, the economy and the public infrastructure needed for social and economic development;
Amendment 57 #
Motion for a resolution Paragraph 4 4. Points out that structural adjustment plans that were developed in the 1990s for over-indebted countries have seriously compromised the development of basic social services
Amendment 58 #
Motion for a resolution Paragraph 3 3. Is concerned at the substantial increase in both private and public debt in many developing countries and the harmful effect thereof on their ability to finance investment expenditure for health, education, the economy
Amendment 59 #
Motion for a resolution Paragraph 4 4. Points out that structural adjustment plans that were developed in the 1990s for over-indebted countries have seriously compromised the development of basic social services and undermined the ability of those countries
Amendment 6 #
Motion for a resolution Recital D D. whereas these initiatives, accompanied by the commodity price boom, have improved the financial situation of many developing countries, while exceptionally low interest rates since the 2008 financial crisis have also contributed to debt sustainability; whereas, however, there can be no guarantees of this favourable set of circumstances continuing to prevail, notably in view of the risk of speculative bubbles bursting, which particularly applies to the commodities market or financial markets;
Amendment 60 #
Motion for a resolution Paragraph 4 a (new) 4a. Stresses that debt relief measures must not be liable to impede the provision of basic services and impair respect for all human rights, particularly economic, social and cultural rights, and development in the recipient State;
Amendment 61 #
Motion for a resolution Paragraph 5 5. Considers that responsibility for spiralling (external) debt rests primarily with the politicians governing the countries in question and that, in many cases, their creditors - especially private creditors - must also be held accountable for the resulting debt crisis;
Amendment 62 #
Motion for a resolution Paragraph 5 5. Considers that responsibility for spiralling (external) debt rests primarily with the politicians governing the countries in question and that, in many cases, their creditors must also be held accountable for the resulting debt crisis, where they grant loans without taking into account the borrowers’ actual ability to repay them;
Amendment 63 #
Motion for a resolution Paragraph 5 5. Considers that responsibility for spiralling (external) debt rests primarily with the politicians governing the countries in question
Amendment 64 #
Motion for a resolution Paragraph 5 5. Considers that responsibility for spiralling (external) debt rests primarily with the politicians governing the countries in question
Amendment 65 #
Motion for a resolution Paragraph 5 5. Considers that responsibility for spiralling (external) debt rests primarily with the politicians governing the countries in question and that, in
Amendment 66 #
Motion for a resolution Paragraph 5 a (new) 5 a. Points out that blending risks leading to a debt bubble, notably in Sub- Saharan Africa and the Caribbean countries with limited revenues to service their debt; accordingly, calls on donors to give the majority of their aid to LDCs in the form of grant; reiterates that any decision to promote the use of PPPs through blending in developing countries should be based on a thorough assessment of these mechanisms, particularly in terms of development and financial additionality, transparency and accountability, and on the lessons learned from past experience; asks that the review of the EFSD includes clear criteria on debt sustainability;
Amendment 67 #
Motion for a resolution Paragraph 5 b (new) 5 b. Highlights the importance of defining safeguards mechanism to prevent contingent government liabilities from undermining the debt sustainability of developing countries; in particular, urges multilateral development banks to conduct ex ante fiscal risk impact assessments of PPP projects (taking into account the full fiscal risks over the lifetime of PPP projects), so as not to undermine the debt sustainability of developing countries; takes the view that IMF and World Bank should include all PPP costs in their Debt Sustainability Analysis;
Amendment 68 #
Motion for a resolution Paragraph 6 6. Considers that the rules or instruments currently in force are
Amendment 69 #
Motion for a resolution Paragraph 6 a (new) 6a. Considers that the terms and conditions of financial agreements should be published by sovereigns, and that full transparency should always apply for all actors and citizens, who should all have free access to the necessary information; considers that debtor States should commit themselves to the same transparency, reliable and honest information about their public finances, debt levels and the nature of these debts, and the arrangements made for supervising them, including independent audits which are sound and recognised by all;
Amendment 7 #
Motion for a resolution Recital D D. whereas these initiatives, accompanied by the commodity price boom, have improved the financial situation of many developing countries, while exceptionally low interest rates since the 2008 financial crisis have also contributed to debt sustainability; but whereas, however,
Amendment 70 #
Motion for a resolution Paragraph 6 a (new) 6a. Calls 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 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;
Amendment 71 #
Motion for a resolution Paragraph 6 a (new) 6a. Takes the view that, where the misuse of public funds is identified by the authorities, creditors ought to trigger warning measures, and where those are not effective, impose sanctions to suspend or even require that loans be repaid before the terms under which they were granted expire;
Amendment 72 #
Motion for a resolution Paragraph 6 b (new) 6b. Calls on the Commission and the Member States to support developing countries when it comes to promoting the public availability of data on their sovereign debt and social education in that area, because detailed information on the state of public finances is rarely available to civil society in developing countries;
Amendment 73 #
Motion for a resolution Paragraph 6 a (new) 6a. Calls for legislation to be drawn up to prevent the repayment of loans to creditors that have been complicit in granting loans to manifestly corrupt governments;
Amendment 74 #
Motion for a resolution Paragraph 6 b (new) 6b. Advocates the drafting of a code of conduct on credit management that is binding on institutional, political and private stakeholders;
Amendment 75 #
Motion for a resolution Paragraph 7 Amendment 76 #
Motion for a resolution Paragraph 7 7. Notes that most of the sustainable development goals
Amendment 77 #
Motion for a resolution Paragraph 7 7. Notes that most of the sustainable development goals can be viewed in terms of human rights and, as such, are
Amendment 78 #
Motion for a resolution Paragraph 7 7. Notes that, like the goals for education or health, most of the sustainable development goals can be viewed in terms of human rights and, as such, are an end in themselves when it comes to combating poverty, whereas debt redemption, on the other hand, is merely a means to an end;
Amendment 79 #
Motion for a resolution Paragraph 8 Amendment 8 #
Motion for a resolution Recital D a (new) D a. Whereas debt crisis triggered by falling commodity prices and volatile capital flows represent an ongoing threat of debt sustainability, especially for developing countries, which continue to be dependent on commodity exports;
Amendment 80 #
Motion for a resolution Paragraph 8 8.
Amendment 81 #
Motion for a resolution Paragraph 8 8. Endorses the guiding principles on foreign debt and human rights formulated by the Office of the United Nations High Commissioner for Human Rights, under which the right to achievement of the sustainable development goals should take priority over debt repayment; calls on Member States of the European Union to promote the systematic use of human rights impact assessments as part of debt sustainability assessments undertaken by the International Monetary Fund and World Bank;
Amendment 82 #
Motion for a resolution Paragraph 8 Amendment 83 #
Motion for a resolution Paragraph 8 a (new) 8 a. calls on the EU and its Member States to adhere to these principles in their bilateral lending as well as when acting within international financial institutions;
Amendment 84 #
Motion for a resolution Paragraph 8 b (new) 8 b. calls on the EU and its Member States to promote the systematic use of human rights impact assessments as part of debt sustainability assessments undertaken by the International Monetary Fund and World Bank;
Amendment 85 #
Motion for a resolution Paragraph 8 a (new) 8 a. Notes that IMF - World Bank Debt Sustainability Assessment (DSA) are usually used by lenders to guide their lending; stresses the need to address their pitfalls, most notably the monitoring of external private debt and the lack of integration of human rights;
Amendment 86 #
Motion for a resolution Paragraph 9 9. Urges development stakeholders to assess the impact of debt servicing on the financing capacity of heavily indebted countries in the light of the SDGs, for which results must be achieved by 2030, taking precedence over the rights of those creditors who knowingly make loans to corrupt governments;
Amendment 87 #
Motion for a resolution Paragraph 9 9. Urges development stakeholders to assess the impact of debt servicing on the financing capacity of heavily indebted countries in the light of the SDGs, for which results must be achieved by 2030, taking precedence over the rights of creditors;
Amendment 88 #
Motion for a resolution Paragraph 9 a (new) 9 a. Supports UNCTAD recommendation to set up an African Commodity Price Stabilisation Fund to reduce the reliability on debt financing whenever there is a significant change in commodity prices;
Amendment 89 #
Motion for a resolution Paragraph 10 Amendment 9 #
Motion for a resolution Recital E E. whereas there has been an increase in the number of developing countries classified by the IMF and the World Bank as burdened with unsustainable debt or presenting a high or medium risk, with most of the low-income countries now belonging to one or other of these categories, which creates a major uncertainty; ;
Amendment 90 #
Motion for a resolution Paragraph 10 10. Calls on the creditor countries to
Amendment 91 #
Motion for a resolution Paragraph 10 10. Calls on the creditor countries to give preference in future to increased official development aid rather than debt servicing, where evaluation reports indicate that achievement of the SDGs is being compromised on a long-term basis by dwindling public finances; calls on the Member States without delay to honour their commitment to devote 0.7 % of their GNP to development;
Amendment 92 #
Motion for a resolution Paragraph 10 a (new) 10 a. Is concerned about the OECD DAC revision of ODA reporting criteria, particularly for Private Sector Instruments, as broadened reporting criteria create incentives for the usage of certain aid modalities, most notably loans and guarantees; notes that while these discussions are ongoing, donors are currently already allowed to report certain loans and guarantees as ODA without an agreed set of rules in place; stresses the need to build in safeguards on transparency and indebtedness.
Amendment 93 #
Motion for a resolution Paragraph 10 a (new) 10 a. Stresses that transparency should be promoted in order to enhance the accountability of the actors concerned; emphasises the importance of sharing of both data and processes related to sovereign debt workouts;
Amendment 94 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to draw up, in coordination with all major international actors and the countries concerned, in the form of a white paper, 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 to ensuring an equitable approach to the problem of debt;
Amendment 95 #
Motion for a resolution Paragraph 11 11. Calls on the Co
Amendment 96 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to
Amendment 97 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to draw up, in the form of a white paper, 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 to ensuring an equitable and sustainable approach to the problem of debt;
Amendment 98 #
Motion for a resolution Paragraph 12 12. Endorses the principles set out by the United Nations Conference on Trade and Development for responsible credit policy, which highlight in particular the shared responsibility of creditors and borrowers (UNCTAD Principles on Promoting Responsible Sovereign Lending and Borrowing), as well as the need for parliamentary control, which is an essential component of public funding operations, and calls on the European Union to support the implementation of the UNCTAD Principles; stresses the importance of introducing monitoring and accountability mechanisms in order to ensure full compliance with the principles adopted;
Amendment 99 #
Motion for a resolution Paragraph 12 12. Endorses the principles set out by the United Nations Conference on Trade and Development for responsible credit policy, which highlight in particular the shared responsibility of creditors and borrowers (UNCTAD Principles on Promoting Responsible Sovereign Lending and Borrowing), as well as the need for parliamentary control, which is an essential component of public funding operations; believes that UNCTAD Principles on Promoting Responsible Lending and Borrowing should be turned into legally binding and enforceable instruments;
source: 616.631
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