EU to offer over €3 billion in grants and loans in bid to tackle root causes of migration
MEPs on the Foreign Affairs, Development and Budget committees say the EU scheme to mobilise €44 billion in private sector investment in Africa and the EU’s neighbourhood should focus on the poor and address the root causes of migration. They also suggested changes to draft operating rules for the European Fund for Sustainable Development (EFSD).
According to a European Parliament press release, as part of the European External Investment Plan, the EFSD would encourage €44 billion in private investments in fragile states by offering a combination of grants, loans and financial guarantees worth of €3.3 billion to boost jobs, growth and stability.
“The EFSD should be an innovative financial instrument that attracts investments into the private sector in least developed countries. I hope this would bring growth and stimulate further development of these countries”, said co-rapporteur Eduard Kukan.
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MEPs proposed the EFSD focus on reducing poverty and supporting micro-, small and medium-sized companies as well as climate change efforts and strengthening the rule of law and human rights. Also, committee MEPs said projects should respect labour rights and the environment and stressed that local populations need a proper complaints should they feel harmed by a project.
Finally, according to MEPs, the European Parliament should have observer status in the EFSD’s strategic board, and the geographic scope of “partner countries” should not be changed without Parliament’s assent.
The changes to the draft operating rules were backed by 75 votes to 9 with 5 abstentions.
Since the Council agreed its negotiating position in December 2016, Parliament will start talks with it on the final shape of the scheme if there is no objection at the April plenary session in Brussels.
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