European Parliament resolution on new financial instruments for development in connection with the Millennium Goals
Date: 2006-02-16
Institutions: European Parliament
Subjects: aid policy, developing countries, development aid, development policy, poverty

C 290 E/396

Official Journal of the European Union

EN

29.11.2006

Thursday 16 February 2006

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

Amendment 65
Annex, point 3.6, paragraph 1a (new)

A number of different demarcation criteria may be employed,
such as project size, territorial impact (at regional and local
level), investment type, beneficiary type, etc.

Amendment 66
Annex, point 3.6, paragraph 2

As regards the development of human capital, support under
rural development would target
farmers and the economic
actors involved in the diversification of the rural economy. The
population of rural areas could receive support as part of an
integrated, bottom-up approach. Actions in these fields should
be implemented in full compliance with the objectives of the
European Employment Strategy, as set out in the Integrated
Guidelines for Growth and Jobs and coherent with the actions
taken under the national reform programmes in the framework
of the Lisbon process. The Education and Training 2010 work
programme seeks to achieve the education and the training side
of the Lisbon goals. Lifelong learning is at the heart of this pro-
levels and types of education and
gramme and applies to all
training, including the agricultural, forestry and agrifood sectors.

As regards the development of human capital, support under
rural development would target farmers and their families and
the economic actors involved in the diversification of the rural
economy. It would also be coordinated with support afforded
under other structural instruments. The population of rural
areas could receive support as part of an integrated, bottom-up
approach. Actions in these fields should be implemented in full
compliance with the objectives of the European Employment
Strategy, as set out in the Integrated Guidelines for Growth and
Jobs and coherent with the actions taken under the national
reform programmes in the framework of the Lisbon process.
The Education and Training 2010 work programme seeks to
achieve the education and the training side of the Lisbon goals.
Lifelong learning is at the heart of this programme and applies
to all levels and types of education and training, including the
agricultural, forestry and agrifood sectors.

Amendment 67
Annex, point 4, paragraph 2

The framework will provide a limited set of common indicators
and a common methodology. It will be supplemented by pro-
gramme-specific indicators to reflect the character of each pro-
gramme area.

The framework will provide a limited set of common indicators,
in particular territorial indicators as called for by Parliament
in its resolution of 28 September 2005 on the role of terri-
torial cohesion in regional development (1), as well as a com-
mon methodology. It will be supplemented by programme-spe-
cific indicators to reflect the character of each programme area.

(1) Texts Adopted, P6_TA(2005)0358.

P6_TA(2006)0063

Millennium Development Goals

European Parliament resolution on new financial instruments for development in connection with
the Millennium Goals

The European Parliament,

— having regard to the forthcoming International Conference on Innovative Sources of Financing for

Development to be held from 28 February to 1 March 2006 in Paris,

— having regard to the Millennium Development Goals (MDGs) and the UN World Summit, reviewing

progress towards the MDGs, held on 14 to 16 September 2005,

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— having regard to the Landau Report on ‘New International Financial Contributions for Development’,

commissioned in November 2003 by President Chirac,

Thursday 16 February 2006

— having regard to the New York Declaration on the Action Against Hunger and Poverty, signed by over

120 countries during the 2004 United Nations General Assembly,

— having regard to the proposal for an International Finance Facility (IFF), which could double the amount

of development aid, put forward by UK Chancellor Gordon Brown,

— having regard to the solidarity contribution on French plane tickets, which will enter into force on

1 July 2006,

— having regard to the Commission staff working paper on an analysis of a possible contribution based

on airline tickets as a new source of financing for development (SEC(2005)0733),

— having regard to the Declaration on Innovative Sources of Financing for Development, signed by 79

governments prior to the UN World Summit in September 2005,

— having regard to Rule 103(4) of its Rules of Procedure,

A. whereas sound development policies, sustained by substantial and effective development aid, are crucial
to breaking the spiral of poverty and giving developing countries the means to release their economic
potential,

B. whereas no amount of development aid will ever break the cycle of poverty in developing countries
until they have sufficient capacity to absorb the aid, implement good governance and fight corruption,

C. whereas the Millennium Development Goals Report 2005 provides clear evidence that the objective of
helping poor countries achieve the MDGs by the target year of 2015 cannot be achieved unless addi-
tional political and financial commitments are made in terms of quantity as well as quality of aid,

D. whereas the New York Declaration on the Action Against Hunger and Poverty calls upon the govern-

ments of developed countries to make concrete commitments as regards the financing of the MDGs,

E. whereas any innovative mechanisms must add to current levels of Official Development Assistance
(ODA), in order for them to bring real added value to the financing of development; whereas the
Member States must stay firm on their commitment to devote 0,7 % of their GNI to ODA and must
adopt a time plan to achieve this target by 2015,

F. whereas the World Bank estimates that at least USD 50 billion extra per year in ODA will be required

to meet the MDGs by 2015,

G. whereas contributions to the Global Fund to Fight Aids, Tuberculosis and Malaria raised less than 15 %

of the money needed,

H. whereas the lack of stability and predictability in aid and financing for developing countries has been a
major impediment in the fight against poverty; whereas secure funding is essential, particularly for the
funding of key public services, such as health and education,

I. whereas the IFF for Immunisation (IFFIm) proposed by the UK has been internationally endorsed, sup-
porting underused vaccines in over 70 countries as well as strengthening immunisation delivery sys-
tems,

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1. Welcomes the conference to be held in Paris from 28 February to 1 March 2006, which seeks to
make progress on the agreement of international levies, with a particular focus on a possible levy on airline
tickets;

Insists that any alternative methods of financing for development must bring new, additional funds for

2.
development and must not replace ODA;

3. Warmly welcomes the Council agreement reached in June 2005 to double EU aid to developing coun-
tries and for Member States to increase their ODA in order to achieve 0,56 % of GNI by 2010 and 0,7 % of
GNI by 2015;

4. Welcomes the renewed commitments by the international community at the UN World Summit to
achieving the MDGs and to promoting sustainable development; regrets the lack of a precise timetable
committing all developed countries to the pursuit of the intermediate and final MDG targets;

5.
Calls on developed countries to fulfil their obligations and meet their commitment to increase national
aid budgets to 0,7 % of GDP, and considers that the search for innovative forms of financing should not
replace this real priority;

6.
Stresses that an increase in quantity must go hand in hand with an increase in quality, i.e. the effec-
tiveness of aid must be improved by application of the ‘3 Cs’ — coordination, complementarity and cohe-
rence — as well as by reducing the transaction costs of aid, improving the predictability and sustainability of
aid mechanisms, increasing the speed of delivery of aid, further untying aid, finding solutions to unsustain-
able debt burdens, promoting good governance, combating corruption and increasing the absorption capac-
ity of aid recipients;

7. Welcomes the idea of a pilot project for a solidarity contribution on air tickets to finance the fight
against HIV/AIDS and other pandemics and to help achieve the MDGs; welcomes also the prospect of
making development finance more stable and predictable;

8.
Calls on the Member States to participate actively in the forthcoming conference in Paris and seriously
to consider taking up this initiative; recognises, however, that matters of taxation not subject to EU harmon-
isation policy remain under the exclusive competence of the Member States;

9. Welcomes the participation of the UK, France, Italy, Spain and Sweden, who have together pledged in
excess of USD 4 billion to the IFFIm, which will be used to support and increase the work of the Global
Alliance for Vaccines and Immunisation; urges other Member States to contribute to the IFFIm;

10. Welcomes, in the context of innovative financing, the newly announced launching of a Commission-
European Investment Bank Trust Fund to finance African infrastructure; calls for an increase in the lending
activities of the EIB in developing countries;

11.
Asks the EU institutions and governments to examine thoroughly the feasibility of a world lottery to
fund actions to combat hunger, as proposed by the World Food Programme in the form of the Food Project;

12.
Underlines that the full support of European citizens, in the context of an extremely tense budgetary
situation, is required and that any new initiative must be managed cautiously so as not to prejudice the
acceptance by European opinion of development policy objectives;

13.
Instructs its President to forward this resolution to the Council, the Commission, the governments of
the Member States, the UN Secretary-General, the UN Special Adviser on the Millennium Development
Goals, the World Bank and the OECD Secretariat.