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Image header Agence Europe
Europe Daily Bulletin No. 9018
Contents Publication in full By article 14 / 25
GENERAL NEWS / (eu) eu/development

Commission analyses two options on contribution toward air fares for financing development aid

Brussels, 01/09/2005 (Agence Europe) - On 1 September, the Commission published a feasibility report and arrangements for a solidarity contribution to be made on airline tickets as a source of development aid. It stresses that this is a technical paper and not a position in favour of any particular mechanism, further to the opposition to the initiative expressed in June by some Commissioners. Commission services point out that it has not been possible to consult the sectors concerned (airline companies, travel agencies and consumer organisations) given the lack of time available. Whatever option is selected, they suggest informal coordination at European level to increase the visibility of national measures. The informal Ecofin Council of 9 and 10 September will deal with the dossier with a view to the UN Summit from 14 to 16 September.

The working paper states that the analysis relates to just two options that the Ecofin Council in July felt could be politically feasible. These options, which would be set in place in a voluntary manner by Member States that so wish, only differ from the contribution that passengers would pay when purchasing a ticket in that they can be either compulsory or voluntary (EUROPE 8971). According to Commission estimates, the sums generated by the two options are almost equivalent: from EUR 568 to 2,763 million for a compulsory contribution with the participation of 25 Member States, and from EUR 572 to 2,859 million for a voluntary contribution, supposing there is 100% passenger participation. The choice between a mandatory or voluntary passenger contribution will be made by the Member States. A consequence of this choice could be that the funds generated would, or would not be, classified as official development aid. The authority to make this classification falls on the statistics working group of the Direction for Development Cooperation (WP-STAT) within the Organisation for Economic Cooperation and Development (OECD). The group will meet in October.

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