The financial crisis is turning into a human one, pushing a further 90 million people into extreme poverty in 2009 alone, warned MEPs on Thursday. The funds pledged are too little, and will arrive too slowly to make the difference that developing countries need. MEPs call for more innovative funding and better worldwide regulation to prevent a further financial crisis.

Parliament is gravely concerned about the fact that, "as at July 2009, 82% of the newly loaned IMF resources had gone to European countries, and just 1.6% to countries in Africa, which is an indication that most of the available resources might be being devoted to high-income emerging markets and middle-income countries that are likely to be able to repay the loans they receive", according to the resolution adopted on Thursday.

The EU should take action to eradicate abuses of tax havens, tax evasion and illicit capital flight from developing countries, say MEPs.

"A new binding global financial agreement should be set up which will force transnational corporations automatically to disclose the profits made and the taxes paid on a country-by-country basis, so as to ensure transparency on what they pay in every developing country in which they operate", said Development Committee chair Eva Joly (Greens/EFA, FR) in the debate held on 14 September.

Deliver on EU pledges

The resolution welcomes the EU's plans to front-load €8,8 billion in development aid, budget support and agricultural financing for immediate action, but MEPs express concern as to how the Commission will fill the funding gap in future years caused by front-loading budget support now.

MEPs also ask the Commission to come up with new proposals for innovative funding mechanisms and urge EU Member States to meet their official development assistance commitments by 2010.