In order to reach universal sustainable development objectives, the European Union must contribute to making the debt of developing countries more sustainable, MEPs have stressed. They set out their recommendations in a non-legislative resolution adopted in Strasbourg on Wednesday by 384 votes to 253 and 27 abstentions.
In line with its rapporteur, Charles Goerens (ALDE, Luxembourg), the Parliament deems that a new, development-oriented approach regarding loans to such countries is crucial.
It recommends that the EU support implementation of the principles defined by the United Nations Conference on Trade and Development (UNCTAD) for a responsible credit policy, subject to parliamentary oversight in order to prevent loans being made to blatantly corrupt governments.
The Parliament believes legislation should be drawn up to prevent loans to such governments and creditors knowingly giving them loans should be subject to sanctions.
It recommends that the Commission should develop a strategy to combat excessive debt in developing countries, in a multilateral approach, setting out the rights, duties and responsibilities of all stakeholders.
MEPs also recommend that the EU and its member states adopt a regulation which takes inspiration from Belgian legislation in order to prevent the repurchase of debt by “vulture funds” – the speculative investment funds specialised in buying up old sovereign debt securities at a low price which multiply the legal procedures against debtor developing countries in order to make maximum profits (see EUROPE 11985). (Original version in French by Aminata Niang)