BRUSSELS, (Reuters) – The European Commission yesterday unveiled plans to accelerate aid to developing countries hit hard by the economic crisis, warning that failure to act could pose a threat to global stability.
The executive arm of the EU said it was bringing forward to 2009 nearly 4.3 billion euros ($5.82 billion) of previously earmarked funds to help poor countries fight a recession that has staunched credit flows, curtailed investment and sent a number of local currencies into a tailspin.
“This multi-faceted crisis poses a serious threat to global stability,” the Commission said in a statement.
The move does not entail adding existing aid to funds already set aside by the EU.
Instead the Commission will “front-load”, or accelerate payment of 3 billion euros, or 72 percent of budget support to African, Pacific and Caribbean (ACP) nations and will direct at least 500 million euros to support local welfare spending.
