European Commission Update

Apr 9th, 2009 12:32 PM UTC
By Eloise Todd

On Wednesday April 9th, the European Commission launched its yearly update on how EU donor countries are helping to meet the MDGs. This year President Barroso and Commissioner for Development Louis Michel used the opportunity to make some key announcements on advancing crucial development assistance for African countries. It’s fantastic that the leadership of the Commission is putting development matters so high on his political agenda. Less than a week after the London Summit, the Commission outlined three main ways it would act to help developing countries combat the effects of this economic crash:

1. Pushing EU governments to meet their aid promises and ensuring the highest degree of aid effectiveness possible. Development Commissioner Louis Michel’s message was: “We know what we must do: meet our aid targets, advance our money to have an impact when it is most needed, refocus our existing programmes to tackle the crisis and then make every Euro count”.
2. The EU is proposing spending more cash for the poorest countries to help fill some of the financing gaps created by the economic downturn. The €1billion Food Facility was intended to be spent over 3 years- now the Commission have promised to spend €800m of it by the end of the year to inject much-needed cash into the agricultural sectors of countries most in need of support for farmers. A whopping €3billion will be brought forward for African, Caribbean and Pacific country governments and another €500m for spending on health, education and other vital social spending.
3. Thirdly aid effectiveness is the Commission’s priority. When Louis Michel spoke of ‘making every euro count’ he was alluding to some research he had commissioned which showed that just by working together more effectively, the European Commission and the 27 governments could save a huge €7billion a year which could be freed up to save lives in this downturn. The Commission wants more coordination between donors- it’s common sense that not every donor should work on every sector in one country, and we should be seeing more of donor countries playing to their strengths and taking the lead amongst donors in their specialist areas.

All in all the announcement yesterday was a very positive step- it shows the EU has not just read the G20 communique and agreed- it is doing that rare thing of acting quickly upon agreements. We hope it will convince other G20 countries to do the same, and fast- we’re particularly looking toward the Spring Meetings of the World Bank and IMF to raise more funding for Africa in grant form. Any loans that are given we will argue should be extremely concessional so they don’t spark another debt crisis. There are of course some concerns about the announcements yesterday– Will governments replenish those funds when there’s not enough in the pot next year? Ironically, if the EU alone kept to its 2010 promises, that would mean another €20 billion on overall assistance over the next two years. So the message is simple- we welcome these announcements, on the condition that EU governments stick to their ODA promises.

-Eloise Todd

TAGS: Development Assistance, European Union, Millennium Development Goals, Policy News