MOTION FOR A RESOLUTION

5.1.2005

to wind up the debate on statements by the Council and Commission
pursuant to Rule 103(2) of the Rules of Procedure
by Eoin Ryan
on behalf of the UEN Group
on debt relief for developing countries

B6‑0022/2005

European Parliament resolution on debt relief for developing countries

The European Parliament,

–  having regard to its previous resolutions,

–  having a strong commitment to the implementation of the Millennium Development Goals by the year 2015,

–  having regard to the adoption of EU guidelines on human rights defenders by EU Governments in June 2004,

–  having regard to the Heavily Indebted Poor Countries (HIPC) initiative, which was set up by the World Bank and the International Monetary Fund in 1996,

–  having regard to the fact that the EU is a generous donor to the debt relief process having already contributed over $ 900 million to the World Bank Trust Fund for debt relief,

–  having regard to the fact that the European Union is committed to writing off bilateral debts owed to it by countries qualifying for debt relief under the Heavily Indebted Poor Countries initiative.

–  having regard to Rule 103(2) of its Rules of Procedure,

A.  whereas high levels of external debt and the consequent costs of debt service have become a growing burden on the exchequers of many developing countries,

B.  whereas such limitations on public expenditure disproportionately affect the poor, constrain economic growth and limit the ability of a country to manage its own future economic development,

C.  whereas 42 of the world’s poorest countries are now included in the HIPC initiative,

D.  whereas the objective of the HIPC initiative is to provide broad, fast and substantial debt relief to the world’s 42 poorest countries.

E.  whereas, by the year 2002, 26 of the 42 eligible countries had qualified for debt relief worth $ 25 billion dollars,

F.  whereas on average up to 50% of the debts of these 26 countries will be written off,

G.  whereas some countries are still facing particularly difficult problems with debt relief even after qualifying for the full amount of debt relief available,

H.  whereas Zambia, for example, faces particular problems and will continue to spend 25% of government revenue on debt service payments,

1.  Calls on EU governments to fully recognise that the debt burden continues to be the obstacle to the efforts of poor countries to reduce the number of people living in extreme poverty;

2.  Calls on the European Union governments to work closely with organisations such as Debt Relief International to assist the poorest countries in the world in the effective management of their debts;

3.  Calls on EU governments to further intensify their efforts to lift their foreign debt burden on the poorest countries in an effort to lift these countries out of economic stagnation;

4.  Calls on EU governments, the World Bank and the International Monetary Fund to recognise that, if the escalating debt crisis is not speedily resolved, the Millennium Development Goal of halving world poverty by 2015 will not be achieved;

5.  Calls on EU governments, the World Bank and the International Monetary Fund to totally cancel the debts of heavily indebted poor countries, and considers that there is a particularly urgent need to cancel debts of countries where there is high HIV/AIDS prevalence;

6.  Calls on EU governments, the World Bank and the International Monetary Fund to ensure that the cancellation of HIPC debts is accompanied by a strong monitoring and accountability mechanism so that additional funds available are channelled into increased social expenditure, particularly in connection with HIV/AIDS, and are not abused through corruption;

7.  Calls on the Luxembourg Presidency of the European Union to ensure that the issue of debt relief for the poorest countries in the world is high on the political agenda of priorities during its term of office;

8.  Instructs its President to forward this resolution to the United Nations Security Council, the governments of the EU Member States, the Co-Presidents of the ACP/EU Joint Parliamentary Assembly, the President of the World Bank and the President of the International Monetary Fund.