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Europe Daily Bulletin No. 8963
Contents Publication in full By article 12 / 30
GENERAL NEWS / (eu) eu/ecofin/development

Lengthy debate and few results according to Juncker on plane ticket contributions - new Commission feasibility study

Brussels, 07/06/2005 (Agence Europe) - At the end of the debate at the Ecofin Council Jean-Claude Juncker conceded that they were experiencing a rout “which is generally the case when you're left alone”. He was referring to the possible setting up of a plane ticket contribution for supporting development aid. He regretted that with no Commission assessment forthcoming, and on the simple basis of the general document of the Economic and Financial Committee (EFC), ministers had held a “lengthy debate with few results”. National positions that are known and were often repeated illustrated that countries on the periphery of the EU were mostly hostile to such an option and the prospects for its implementation in all Member States remains remote. On Tuesday, the voluntary character of this source of additional development funding raised more questions than during the informal Ecofin and a technical document on the practical feasibility of such an option would have been useful to ministers. The Commission had refused to submit such a document (EUROPE 8960) but Commissioner Kovacs will propose a form of “detailed technical analysis” by the next Ecofin. Juncker explained that they had reconfirmed their decision on Member States distinguishing between a voluntary and compulsory contribution. Finally, this choice could be made at three levels: passengers could choose to pay it but airlines could also decide whether to propose it to their passengers and Member States could decide whether to introduce it or not. Ireland said that it would be regrettable to make something voluntary, obligatory. In its document, the EFC said that such a contribution would be “relatively easy to implement on the basis of a flat rate basis for all flights”. In terms of efficiency, this option appears more seductive and almost painless as every euro raised from a ticket would allow for raising an extra EUR 500 million if was applied in the EU as a whole, explained the EFC. Juncker said that such an option would “pay”.

Ministers also reaffirmed their commitment on another aspect of development funding by supporting intermediate public aid thresholds for development (PDA) in an effort to reach 0.7% of GDP in 2015 and followed their counterparts in charge of development who had made commitments to an intermediate objective of 0.56% collectively (and of 0.51% individually) for the EU15 in 2010 and which gave more room for manoeuvre for new Member States trying to attain the 0.17% in 2010 and 0.33% in 2015 (EUROPE 8953). The EFC will again examine debt reducing measures on a case by case basis for poor and indebted countries, notably with the possible use of gold reserves from the IMF. It will also look in detail at the question of International Finance Facilities (IFF) and its pilot version for vaccinations (IFF for Immunisation) which Eurostat will be working out the accounting process.

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