The aid package, proposed by the European Commission in July, would free up unused funding from the EU agriculture budget to buy seed and fertiliser for developing countries, thus strengthening their capacity to cope with rising global food prices.
But although the 27-member bloc agreed "in principle" to maintain delivery of the package, several member states expressed discontent at having to release additional funding at a time of global financial turmoil.
Common Agriculture Policy (CAP) surpluses are above average this year following the hike in global food prices, and normal procedure allows surpluses to be returned to the EU budget's largest net contributors.
As a result, many EU countries are reluctant to approve the aid package, citing irregular "budgetary reasons".
Commissioner Michel attacked member states for their intransigence, insisting that the EU urgently needed this funding. "All international organisations [...] and the people who need this billion [euro] to save their 2009 and 2010 harvests are waiting for this tiny gesture," he said.
European NGO network SOLIDAR delivered an equally strong message to the EU that the "financial crisis must not be used as an excuse": "We urge all member states to resist the temptation to water down their Overseas Development Assistance (ODA) commitments. We call on all member states to support binding timetables in order to ensure the predictability of aid and fulfill the promises we have made."
Angela Corbalan of Oxfam International told EurActiv: “Ahead of the Doha Financing for Development Conference in December, all eyes will be on European leaders to see if they can live up to the EU’s reputation as the global leader on development. The one billion ‘food facility’ is a necessary first step. For millions of the world’s poorest citizens, the credibility of Sarkozy’s leadership of Europe will literally be a matter of life and death.”
The French EU presidency has been particularly active in promoting its development agenda. It is expected to try to find a solution to the impasse next week.
