Poverty deal is 'major breakthrough'

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bu GEOFF MEADE

HILARY Benn, the International Development Secretary, yesterday hailed a new European deal on development aid as a "major breakthrough" in the fight against world poverty.

The richest 15 EU member states agreed in Brussels to set a new spending goal - spending at least 0.51 per cent of their national wealth on the developing world by 2010.

The newest ten member states, most of them relatively poor, agreed a parallel target of 0.17 per cent.

The new development aid deal would virtually double the EU's combined aid effort, from £22.4 billion a year last year to £44.3 billion in 2010.

Both goals, approved by Mr Benn and fellow EU development ministers, are designed to revive momentum towards achieving a United Nations target of spending 0.7 per cent of national wealth on development by 2015.

"This is a landmark in international efforts to make faster progress towards the millennium development goals," said Mr Benn.

"The EU provides over half of all global assistance. Today's agreement shows that Europe has put itself at the forefront of efforts to reduce global poverty. I very much hope that other donors will follow Europe's lead as soon as possible."

Gordon Brown, the Chancellor, welcomed the EU agreement. "I do believe we have a once-in-a-generation opportunity to make a huge difference," said Mr Brown.

"We are raising an extra $40 billion, and if all the richest countries that are meeting in Gleneagles in a few weeks' time can agree on a package, that will mean debt relief, aid, trade justice.

"I praise the European countries, all 25 of them, which deserve support from the rest of the world."

Jonathan Glennie, a senior policy officer for Christian Aid, said the organisation also welcomed the new money. "We are very excited about the announcement. We think it is great news," he said.

"The governments of Europe have responded to clear public pressure on this and the public have said we need to be more generous to poor countries.

"We congratulate campaigners but it is very important to remember that this is a first step towards making 2005 a year we can all really remember."

Christian Aid was calling for more and better aid, debt cancellation and trade justice, he added.