By Bruno Waterfield - 8th September 2005
France, Italy, Spain, Sweden and the UK have launched the International Finance Facility of Immunisation at an informal meeting of EU finance ministers.
The IFFI will provide $4 billion for the public private Global Alliance for Vaccine and Immunisation.
Participating countries will borrow cash on capital markets and pay debts back using public aid budgets.
The European Commission has ruled that the spending will not be counted when strict Brussels budget deficit rules are applied to national treasuries.
UK finance minister Gordon Brown, EU presidency chair of the Manchester meeting of finance ministers claimed the initiative would save five million lives over the next ten years.
“This is not a small initiative. This is a huge initiative which will involve the whole international community,” he said.
Britain will contribute $130m a year to the fund for 20 years, France will pay $100m a year, Italy, Spain and Sweden have made firm commitments.
The US has declined to back the fund but Microsoft boss Bill Gates is to plough $750m into it over 10 years.
Europe’s finance ministers are expected to finalise an EU position on development financing ahead of a world UN summit in New York next Wednesday.
On the table will be options for a voluntary EU air tax to fund aid – France and Belgium are pursuing national schemes.
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