ACP heavily indebted poor countries HIPC: special loans, debt alleviation

The European Parliament adopted the resolution by Mario MANTOVANI (EPP-ED, Italy) on HIPC debt alleviation. (Please refer to the document dated 21/02/02.) Parliament pointed out that the EU's average ODA contribution dropped from 0.45% in 1990 to 0.33% in 2001. The EU has set a binding ODA target for Member States which is intended to bring the Community average up to 0.39% of GDP by 2006, as an interim step towards reaching the UN target of 0.7% of GDP, as certain individual Member States already have. Parliament felt that the EU should decide on a mandatory time-frame for reaching this target by 2010. It added that trade liberalisation aimed at economic growth must be carried out within a framework which guarantees equity for countries and promotes sustainable use of the environment and its resources. The urgent need for technology cooperation and technology transfer with development countries is emphasised, as is the need for a stable investment climate. Trade is one of the most important external sources of development financing. Trade barriers, subsidies and other trade-distorting measures, particularly in sectors of special export interest to developing countries, including agriculture, should be assessed with a view to being eliminated. Finally, Parliament reaffirmed the EU undertaking that 35% of the 2002 EU development budget should be spent on health and education, as fundamental elements of poverty eradication.�