EU support for the generation of public revenue in developing countries

8.3.2017

Question for written answer E-001585-17
to the Commission
Rule 130
Adam Szejnfeld (PPE)

The generation of public revenue, in particular through tax collection, is key to sustainable development in developing countries. For that reason, it has become a priority in EU development policy. The EU earmarked more than EUR 5 billion for that purpose between 2012 and 2016, half of which went to Sub-Saharan Africa.

Unfortunately, many sources have suggested — and the European Court of Auditors (ECA) has confirmed — that these EU funds are not being put to the most effective use. What is more, not only are public finances in Sub-Saharan Africa not growing at a satisfactory rate, the situation has actually been getting worse in some countries over the last few years.

According to the ECA, the Commission has not been paying enough attention to the mobilisation of countries’ revenues, and its assessments have not always been sufficiently thorough. They have not, for example, covered certain key aspects of policy and budget administration in particular countries, nor have they taken account of important risks associated with tax exemptions, tax collection and revenue derived from natural resources.

Given that the EU is paying out significant sums of money to help developing countries generate public revenues and that these efforts are yielding unsatisfactory results, is it planning to modify its action and applicable instruments in such a way as to make development policy more effective?