Video-EU plans to cut aid to LatAm countries

The European Commission has decided to end the support for development provided to 19 emerging countries, including Venezuela.

The European Commission argues that the decision represents an evolution in its relations with emerging countries and aims at increasing aid for the poorest countries.

With this measure, the EU attempts to avoid allocating resources in countries whose economy is growing fast. Caracas claims to have invested more than $400 billion in social projects in the last 11 years. Moreover, findings from the National Institute of Statistics indicate that about two and a half million people have overcome extreme poverty between 1998 and 2011.

The EU will include the cessation of this aid in its 2014-2020 budget. The other Latin American countries to stop receiving the benefit are Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Uruguay. China Iran, and India are also on the list.

The European Commissioner for Development, Andris Piebalgs emphasized the EU needs to continue leading the fight against poverty. Piebalgs also said that the EU would continue to cooperate with the 19 countries in areas such as climate, equity, and human rights.

These recipients of European aid are believed to have boosted their domestic policies and are now capable of funding their own development projects. In the case of Venezuela, the government estimates the country will have a 5% economic growth in 2012.