EU fails to deliver €40bn in aid promised to developing countries, report finds

EU countries including Ireland are cutting back on their aid to the developing world and some are even using creative accounting to cover the drop in money donated.

The economic crisis is being blamed for the cuts, but aid groups say funding from the 27 member states is less than half the money put into rescuing Northern Rock and Dexia banks.

The report by Concord, the federation of European development NGOs, says that governments are now contributing €40 billion less than they promised.

Justin Kilcullen, president of Concord and Ireland’s Trocaire, said: “History will judge Europe according to its actions now. If Europe fails to act we will be seen as having turned our back on the poorest in their time of need, and missed the opportunity to deliver a genuine EU development legacy.”

Official figures show that last year Europe allocated 0.4% of gross national income (GNI) to aid, but Concord’s report shows that figure is closer to 0.34%.

Out of almost €50bn in aid, close to €5bn went to debt cancellation, €2bn to hosting foreign students in Europe and close to €1bn to hosting and sending home refugees.

At the same time countries have mobilised huge amounts of money for its banks. Over €150bn was found to bail out Northern Rock and Dexia alone – more than double the amount of EU aid last year, the report says.

France spent 45 times more on bailing out their banks than they did on aid while Italy’s cut in aid would have paid the salaries of 180,000 teachers or 50,000 midwives.

“Europe is failing to mobilise the same level of political will for aid and instead governments, including Ireland, have been cutting their aid budgets,” said Mr Kilcullen, adding that Europe needs to refocus its efforts on bailing out the poor.

The report estimates that between 2006 and 2010, European countries will have failed to provide €39bn of promised aid to developing countries, due to inflated aid practices and missed official targets.

The cuts are happening at a time when the economic crisis is having an even greater impact on developing countries than those in the first world, Mr Kilcullen said.

Elise Ford of Oxfam said the last global recession saw aid levels fall by a quarter and it took 10 years for them to return to existing levels. “The lives of millions of poor are on the line, as is Europe’s reputation,” she said.

In 2005, EU countries committed to give at least 0.51% of GNI by 2010.