European civil society scorecard for EU action in financing for development
The coming year will be crucial for international negotiations to match shared global ambitions with binding commitments on financing for development. Discussions will create a new global sustainable development framework including post-2015 development goals, the post-Rio sustainability goals, and climate change financing.
The European Commission (EC) has recently released a communication on post-2015 financing, but recognizes that this “does not propose new actions or commitments for the EU.” However, the EU’s credibility and reliability as a global actor will be determined by what it will bring to the table and the specific new commitments it is willing to make and deliver.
Concord, Eurodad and CAN Europe propose 12 specific actions as an initial test of the EU’s ambition and credibility in these global negotiations, and we urge the EU to go beyond restating old commitments and adopt the proactive, positive and powerful measures below.
Take action in the EU – put our own house in order
1. Deliver public government registries of the real beneficial owners of companies, trusts and other corporate structures through the ongoing revision of the Anti-Money Laundering Directive.
2. Make the country-by-country reporting already adopted for the banking industry mandatory for transnational companies in all sectors.
3. Ensure full and effective participation of developing countries in the design and implementation of multilateral automatic information exchange between tax authorities.
Stop undermining the policy space partner countries need to lead their own development
4. Refrain from pushing trade and investment agreements and international taxation standards that are detrimental to developing countries’ economic and development interests and to their own regional integration processes.
5. Endorse, implement and strengthen the UN principles on lending and borrowing, particularly by including private lending.
6. Ensure public and private finance to developing countries supports national priorities and democratic ownership and sustainable state-society relations, in keeping with commitments made at Busan.
Increase and improve external public financing
7. Agree allocation of funds from innovative sources to sustainable development and international climate finance, for example by redirecting subsidies away from fossil fuels, from carbon pricing of maritime and aviation transport and set aside 50% of revenues from the 11 country European financial transaction tax.
8. Meet the longstanding commitment to devote 0.7% of GNI to ODA in a transparent and accountable way and eliminate inflated aid.
9. Ensure the promised new and additional funds for climate finance are over and above aid commitments, and this is effectively monitored and transparently reported.
10. Thorough evaluations of development and poverty reduction impact, including whether the money could be better used elsewhere, should be conducted before further promoting the diversion of scarce ODA to blend with loans that mainly benefit European companies.
Help prevent future finance and debt crises
11. Support and strengthen UN efforts to introduce fair and transparent debt work-out mechanisms.
12. Improve the regulation and supervision of the financial sector, and support developing countries’ involvement in reforms.