EU vows to help developing countries tackle economic crisis

Special Report:Global Financial Crisis

BRUSSELS, April 8 (Xinhua) -- The European Commission (EC) on Wednesday
outlined a range of actions to help developing countries tide over the ongoing
economic crisis.

"The full impact of the current (economic) downturn on our partners is only
now becoming clear -- those least responsible for the financial crisis are among
those worst hit by its economic effects," said EC President Jose Manuel Barroso.

"The recession must not, cannot, will not be used as an excuse for going
back on our promises to keep on increasing aid," he said.

In a policy *** adopted on Wednesday, the EC pledged to keep its aid
promises made in 2005 -- aid comprising 0.56 percent of gross national income
(GNI) of the European Union (EU). To meet this goal, 20 billion euros (26
billion U.S. dollars) are needed by 2010.

EU aid was 49 billion euros (65 billion dollars) in 2008, representing 0.40
percent of GNI.

The EC, the executive body of the EU, wants greater use of its development
aid to leverage other funds, including through the European Investment Bank.

Every euro spent on aid should leverage up to five euros of private
investment, it said.

Another proposal is to bring forward and refocus existing commitments on
the most vulnerable. Overall, 4.3 billion euros (5.7 billion dollars) would
bring forward in 2009.

The commission is "frontloading" 3 billion euros (4 billion dollars), or 72
percent of its foreseen budget support to African, Pacific and Caribbean
nations. In addition, it will direct at least 500 million euros to allow
developing countries to continue social safety net spending. A further 800
million euros from an existing "food facility" would be made available in 2009.

The policy *** also wants to make existing aid more effective. A study
commissioned by the EC has shown that as much as 7 billion euros (9 billion
dollars) per year can be freed up by *** aid more effective.

Louis Michel, EU commissioner for development and humanitarian aid, said
that "we know what we must do: meet our aid targets, advance our money to have
an impact when it is most needed, refocus our existing programs to tackle the
crisis and then make every euro count."