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Europe Daily Bulletin No. 8582
Contents Publication in full By article 36 / 48
GENERAL NEWS / (eu) ep/latin america/asia

EP separates rules on co-operation with Asia and Latin American and increases donations to latter

Brussels, 10/11/2003 (Agence Europe) - In its adoption last week at first reading of the report by Marieke Sanders-ten Holte (Liberal, Netherlands) by 334 votes in favour, 159 against and 24 abstentions, the Parliament has brought around a hundred amendments to the rules on co-operation between the Community and the countries of Asia and Latin America.

It firstly established two separate texts, one for Asia, the other for Latin America. It feels that this should allow co-operation to be adapted better to the specific nature of each region, and clarify project management. Commissioner Chris Patten rejected this initiative during the debate, because he felt he had heard "no convincing argument" to justify it.

MEPs also decided to modify the distribution of aid planned for 2003-2006, granting 40% to Latin America and 60% to Asia, as opposed to 34% and 66% planned by the Commission. This means that 1.517 billion EUR will be allocated to Latin America (instead of 1.270 billion) and 2.276 to Latin America. The Commission's proposals apparently led to a 42% increase in aid to Asia, and a reduction of 5% in credits allocated to Latin America.

The EP also called for a Bi-regional Solidarity Fund to be set up as an instrument of the bi-regional partnership announced at the EU/Latin America Summits of 1999 and 2002. This fund would be financially neutral and paid for by other organisations and interested countries. Commissioner Patten also opposed this move.

The Parliament's text also insists that co-operation projects concentrate on the poorest countries, and stresses the eradication of situations of extreme poverty. It introduces a "reference rate" meaning that 35% of annual commitments will go on social infrastructure, a rate calculated in accordance with OECD standards, and which had been agreed with the Commission for the 2002 budget, emphasises Parliament.

MEPS ask that interested parties, "including civil society organisations representing people living in poverty" be consulted during the negotiation of co-operation agreements and aid programmes. In a "recital", Parliament stresses the coherence of internal EU policies and the objective of eradicating poverty. It stresses "the responsibility of institutions and Member States of the EU to prevent the potentially harmful economic, social and environmental effects for developing countries of certain other Community policies such as agriculture and fisheries, energy and transports, the internal market and trade".

This text, which will replace the regulation in force for ten years, will shortly be submitted to the Council.

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