The European Union to pledge almost 22 billion euros in aid to Africa, the Caribbean and the Pacific Islands
Press release 245/2006
July 17, 2006
The Member States of the European Union signed an agreement on the 10th European Development Fund in Brussels on 17 July. The Fund, amounting to 22.7 billion euros for the years 2008–2013, will be used to finance EU cooperation with countries in Africa, the Caribbean and the Pacific Islands (ACP) and in the overseas countries and territories (OCT) of the European Union. In addition to this, the European Investment Bank will provide 2 billion euros for ACP cooperation. With conclusion of the agreement, the new EU Member States will take part in financing ACP cooperation for the first time. Paula Lehtomäki, Minister of Foreign Trade and Development, signed the agreement on behalf of the EU Presidency.
Finland’s contribution to the Fund is 1.47 per cent, or approximately 333 million euros.
With the signing of this agreement, the EU significantly increases its support to ACP countries, whose share of the Fund’s financial package during the period comes to 21.966 billion euros in grants for development projects. Compared with the preceding 9th European Development Fund, agreed in the year 2000, the aid represents, on average, a 35 per cent increase. Aside from aid through the Fund, the EU provides some support to ACP countries through the Community budget. EU support to ACP nations during the implementation phase of the agreement will amount to 4–5 billion euros per year.
The agreement’s entry into force requires its ratification in the Member States and the approval of Regulations pertaining to its implementation. The the Fund should be operational in the beginning of 2008.
The EU and its Member States are together the most important partner for developing countries when measured in terms of development cooperation or foreign trade. Official development assistance granted by the Community and the Member States in 2005 totalled more than 40 billion euros. This sum corresponds to 55 per cent of all official development assistance worldwide.
The EU’s cooperation with ACP countries is based on the Cotonou agreement signed in 2000. Cooperation dates back to the 1960s; in recent years it has developed from traditional development cooperation into a broader political and economic interaction. The EU has pledged to allocate a share of the 10th European Development Fund’s resources to support Economic Partnership Agreements and the integration of ACP countries into the global economy. Most of the world’s least developed countries are ACP countries.
Additional information: Director Sinikka Antila, tel. +358 9 160 56283, and Counsellor Anne Ahonen, tel. +358 9 160 56272, Unit for General Development Policy and Planning of the Department for Development Policy, Finnish Ministry for Foreign Affairs.
Minister Lehtomäki at the signing of the 10th EDF(Link to another website.)