Despite, pressure from the United Kingdom, France and President Bush, EU leaders failed to commit to donating €1 billion euros to the Global Fund to Fight AIDS, TB and Malaria at last weekend's EU Summit in Greece, agreeing instead `to make a substantial contribution`. The formula was agreed because Germany, the Netherlands and several other smaller states said that they could not afford to give more support because of ongoing budgetary problems.
The final declaration from the European heads of government stated that the European Council “calls upon each Member State and the Commission to make a substantial contribution, on a long-term basis, to the financing of the Fund.”
The final amount to be given this year will not be decided until a meeting of Global Fund donors in Paris next month.
A spokesman for the European Commission told EU Business that the Commission was disappointed that some heads of government had felt unable to commit to the target, and it would work to maximise the EU contribution.
The 1 billion euro contribution target was set as a result of a US stipulation that any US donation should not comprise more than one-third of the Global Fund’s annual donations.
However, last week’s proposals from Congressional Republicans on how much should be allocated to foreign aid (including the Global Fund) leave significant doubts as to whether the US will be able either to increase its support for the Fund or to make a long-term commitment.
At the moment, the Global Fund is still far short of the funds its needs. The Fund says it needs $3 billion by the end of 2004. At present only 23% of the Global Fund's projected needs in two funding rounds during 2004 are met.