Reuters AlertNet Lite - EU worried by Wolfowitz affair, hopes won't hit aid

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EU worried by Wolfowitz affair, hopes won't hit aid

16 Apr 2007 11:35:48 GMT
Source: Reuters

BRUSSELS, April 16 (Reuters) - The European Commission raised concerns on Monday over the controversy surrounding World Bank President Paul Wolfowitz and expressed hopes it would not hit plans to boost cooperation between the two key aid bodies.

Wolfowitz has said he will not stand down over a promotion he approved for his girlfriend despite increasing fears among bank member governments that the affair is hurting its image as an agency that is tough on corruption.

"We are concerned about the institution, we are concerned about these allegations and of course we are monitoring this," a spokesman for EU Aid Commission Louis Michel said.

"We hope this will be dealt with in the proper way. We hope also it won't affect a cooperation that is increasing and which is crucial in particular for developing countries and more in particular for Africa," he told a regular news briefing.

He said Michel had just had meetings with Wolfowitz in Washington and had reaffirmed plans for the two bodies to examine how their activities could be better coordinated to deliver greater and more efficient aid.

The EU calls itself the world's biggest international aid donor, with its 27 member states providing total assistance of some $59 billion in 2005 and the EU Commission, its executive body, contributing a further $10 billion of common EU funds.

Wolfowitz has come under fire for the high-paying promotion he agreed for his girlfriend, bank employee Shaha Riza, before she was assigned to work at the State Department.

A number of European countries have raised concerns about the affair but none has publicly called for the dismissal of Wolfowitz, who has backing from within the Bush administration who put him forward for the job.

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Last updated:Mon Apr 16 11:38:36 2007