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Europe Daily Bulletin No. 10118
Contents Publication in full By article 19 / 28
GENERAL NEWS / (eu) eu/development

Commission calls on member states to get back on track after aid flows slow in 2009 - Action plan expected on 21 April

Brussels, 14/04/2010 (Agence Europe) - Aid figures from the OECD Development Assistance Committee (DAC) for 2009 show that the Official Development Assistance (ODA) from rich countries of US$ 119.6 billion increased by 0.7% in 2009 compared with the previous year and represents 0.31% of the GNI of member countries, despite the financial crisis.

If the cancellation of some countries' debt (Iraq and Nigeria) is left aside, the rise was 6.8%. This good news was welcomed by OECD Secretary General Angel Gurria who called on donors to keep up the good work. “Aid is still less than 1% of government spending on average in OEDC countries while there is still much effort needed to reach the Millennium Development Goals,” he noted.

In the EU, there was a slight decrease in the level of aid in 2009 from the 15 older member states (which are also members of the DAC). This was already known through preliminary figures published by the OECD on 17 February, based on aid projections (see EUROPE 10080).

The consolidated figures confirm that aid from Italy fell by 31%, Ireland's by 18.9% and Germany's by 12%. However, the level of ODA rose in some member states (Belgium +11.5%, Denmark +4.2%, Finland +13.1%, France +16.9%, Luxembourg +1.9%, Sweden +7.4% and the United Kingdom +14.6%), and the EU remains the largest donor providing 56% of world ODA. In 2009, the United States was the largest donor in volume of aid, France, Germany and the United Kingdom were among the world largest donors in absolute terms, the European Commission was quick to point out. The Commission is pleased that, among the five countries which have gone above the UN target of 0.7% of GNI, in addition to Norway, there are four EU member states - Denmark, Luxembourg, the Netherlands and Sweden - and that Belgium is likely to join them in 2010. It feels, however, that there is no reason for self-congratulation given all that remains to be done to help poor countries close the gap.

The EU remains by far the world's largest donor to developing countries. However, the slight decrease in 2009 should be quickly reversed if we are to respect the commitments we took to achieve the Millennium Development Goals. The crisis can't be an excuse,” stated Andris Piebalgs, European Commissioner for Development in a press release.

The EU15 has committed itself to taking its aid level to 0.7% of its GNI by 2015. The 12 new member states have undertaken to take their aid to 0.33% of GNI by the same date. The EU's joint target for 2010 is to allocate ODA of 0.56% of GNI (with a compulsory objective of 0.51% for the EU15 and 0.17% for the EU12).

The Commission has hailed the performance of member states which are already above the average, but says it is concerned that the EU joint objective for 2010 will not be reached. It notes, too, with great concern that, if trends remain the same, the Gleneagles commitment to double aid to Africa will not be met. On Wednesday 31 April, the Commission will put an action plan to member states which will allow them to reach the 0.7% of GNI target by 2015, a target which it feels is realistic and which it urges all donors to comply with.

Oxfam calls on EU to set timetable for getting back on track

Oxfam International reacted to the fall in EU15 aid by calling on EU heads of state and government to get back on track. The figures published by the OECD “show that the EU15 is off-track to hit its target of providing 0.51% of national income in aid in 2010. These figures demonstrate the scale of the challenge for EU governments in delivering a credible European rescue package for the Millennium Development Goals. While some countries such as the UK, Spain and Belgium are taking serious steps towards meeting their aid promises, it's frustrating that big economies such as Germany and Italy are still far from catching up,” the NGOP says in a press release.

Knowing that, in June, EU heads of state and government will be called on to agree a joint position for the UN summit on the review of ODA (New York, September), Oxfam International says that they will be “called to account”. It says that “to regain credibility with poor countries, EU governments must commit to national timetables, backed up by binding legislation, to live up to the aid promises they've already made to one billion people - one sixth of the world's population - who go to bed hungry every day”. (A.N./transl.rt)

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