EU finds EUR 15.6 bn to support global effort against pandemic
Ursula von der Leyen - Photo EC
(BRUSSELS) - The EU is to redirect from existing external resources financial support amounting to more than €15.6 billion to partner countries to help partner countries with their efforts to tackle the coronavirus pandemic.
The EU's collective action will focus on addressing the immediate health crisis and resulting humanitarian needs, strengthening partner countries' health, water and sanitation systems and their research and preparedness capacities to deal with the pandemic, as well as mitigating the socioeconomic impact.
"The virus knows no borders. This global challenge needs strong international cooperation," said Commission chief Ursula von der Leyen.
She promised the EU would soon convene a virtual pledging event to help mobilise the necessary funding and support the World Health Organisation to assist the most vulnerable countries.
The EU's response follows a 'Team Europe' approach, aimed at saving lives by providing quick and targeted support to our partners to face this pandemic. It combines resources from the EU, its Member States and financial institutions, in particular the European Investment Bank and the European Bank for Reconstruction and Development, to support partner countries and address their short-term needs, as well as the longer-term structural impacts on societies and the economy. The first Team Europe packages are already being implemented in the immediate neighbourhood: the Western Balkans, in the East and to the South.
The EU, as global actor and major contributor to the international aid system, will promote a coordinated multilateral response, in partnership with the United Nations, International Financial Institutions, as well as the G7 and the G20.
The European Union will continue to adapt its response to the evolving situation and focus on the most affected countries in need of health support, such as countries in Africa, the Neighbourhood, the Western Balkans, the Middle East and North Africa, parts of Asia and the Pacific, Latin America and the Caribbean. The EU's response will focus on the most vulnerable people, including migrants, refugees, internally displaced persons and their host communities and integrate its strategic objectives set out in the Green Deal and the Digital Agenda.
From the overall package of €15.6 billion, €3.25 billion are channelled to Africa, including €1.19 billion for the Northern African neighbourhood countries.
The EU is securing in total €3.07 billion for the whole neighbourhood – €2.1 billion for the South and €962 million for the Eastern Partner countries – and €800 million for the Western Balkans and Turkey.
In addition, the overall package includes another €1.42 billion in guarantees for Africa and the neighbourhood from the European Fund for Sustainable Development (EFSD).
The EU will support Asia and the Pacific with €1.22 billion, another €291 million will go for the Africa, Caribbean and Pacific region, €918 million to support our partners in Latin America and the Caribbean and €111 million to support Overseas Countries and Territories.
€502 million for Emergency response actions focus amongst others, on:
- Providing immediate support to the Response Plans of the World Health Organisation and the United Nations, as well as to the appeal of the Red Cross and Red Crescent Movement to boost emergency preparedness and response in countries with weaker health systems and those dealing with humanitarian crises;
- Providing immediate humanitarian support in affected countries, in particular in health, water, sanitation and hygiene (WASH) and logistics;
- Supporting increased production in Europe of personal protective equipment and medical devices to meet urgent needs in Europe and in partner countries;
- Organising the supply of in-kind assistance to affected countries through the Union Civil Protection Mechanism;
- Providing guarantee and liquidity provisions to local banks via International Financial Institutions and European Development Finance Institutions, supported by the European Fund for Sustainable Development;
- Supporting global efforts to combat export restrictions and ensure supply chains remain intact, notably for essential medical supplies and pharmaceuticals;
- Associating the Western Balkans to EU initiatives such as the Joint Procurement Agreement for medical equipment and the European rapid alert system for communicable diseases. Countries negotiating their accession can also apply for the EU Solidarity Fund.
€2.8 billion to support research, health and water systems. The EU is, amongst others:
- Supporting partner countries in building resilient, responsive health and social protection systems;
- Supporting communication and awareness efforts on basic protective measures and hygiene advice to prevent the spread;
- Allowing some EU funding from global health initiatives like the Global Fund to fight Aids, Tuberculosis and Malaria, the Global Alliance for Vaccines and Immunisation (GAVI) and the Global Financial Facility to be used to respond to the coronavirus, while ensuring continuation of vital health programmes;
- Supporting further research on diagnostics, treatment and prevention, and once a vaccine is available, fast-tracking approval and subsidizing vaccines and their delivery in vulnerable countries;
- Supporting experts training, epidemiological surveillance and strengthening regional health organisations in Africa, Latin American and the Caribbean and Asia and the Pacific;
- Welcoming candidate countries in the Western Balkans to the EU's Health Security Committee and reflecting how best to associate potential candidates;
- Supporting equal access to health systems for migrants, refugees and host communities.
€12.28 billion to address the economic and social consequences. The EU is amongst other:
- Providing direct budget support and concessional financing for partner countries to adopt reforms for socio-economic development and poverty reduction, and measures to protect workers during the crisis;
- Mobilising macro-financial assistance for Western Balkan and neighbouring countries with the International Monetary Fund (IMF);
- Supporting the private sector, especially small and medium enterprises (SMEs) and the self-employed, via guarantees, liquidity provisions and technical assistance and further reorient guarantees from the European Fund for Sustainable Development towards short-term risk-sharing on loans;
- Providing public sector loans from the European Investment Bank, notably for healthcare equipment and supplies;
- Working with international organizations and European companies to build strong and resilient value chains in strategic sectors and ensure labour rights and corporate social responsibility;
- Promoting forms of debt relief considered by the IMF in affected countries.
The EU global response to fight the coronavirus pandemic - background guide