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UN agencies back EU plan for Africa food aid fund

11th September 2008

By: Reuters

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BRUSSELS - Three major U.N. agencies threw their weight on Wednesday behind an EU plan to use 1 billion euros to help African farmers, urging lawmakers to approve the measure quickly and let the cash start flowing.

The funds, largely the result of underspending in the EU's farm budget, would be earmarked to buy seeds and fertiliser. The European Commission, the EU's executive arm and author of the initiative, wants the money to be used from early January.

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Senior officials from the three U.N. food and farm aid agencies, who are in Brussels to address the European Parliament's development committee, warmly supported the Commission plan and called it timely, significant and effective.

"This money is urgently needed and I think it is a bold, almost poetic move because this is a crisis among the world's poorest farmers," World Food Programme Executive Director Josette Sheeran told a news conference.

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Not all EU countries agree, however, and have questioned its legality. Some, notably Germany, are unhappy about donating the unused farm cash since, in principle, unspent EU funds revert to member states. Germany is the budget's largest net contributor.

The European Parliament, which along with the EU's 27 governments has to agree to the Commission plan before it can enter into force, has also expressed doubts about the scheme.

It is due to vote on the proposal next month, while no date has yet been set for EU ministers to debate the plan.

The idea is for a first tranche of 750 million euros to be earmarked for 2008 but released retrospectively from January 2009 -- in time for March-April planting.

A further 250 million euros would be released during the rest of 2009, via international aid organisations.

"This is a significant amount and a very important and crucial initiative. The amount of money is relevant according to the needs that we assess," said Jose Maria Sumpsi, a senior official from the U.N.'s Food and Agriculture Organization.

Kanayo Felix Nwanze, vice-president of the U.N.'s International Fund for Agricultural Development (IFAD), called the Commission plan a "crucial contribution."

The European Union's farm budget totals around 44 billion euros a year. But for 2008, the EU has underspent on classic support measures such as export subsidies, public buying of staple commodities and subsidised private storage.

 


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