THE EUROPEAN UNION has agreed a multi-billion-pound aid commitment to fight global poverty this week.

Development ministers meeting in Brussels on Tuesday said that they would increase the EU aid-budget by £14 million a year above the commitments it had already made for 2006. The European Union provides more than half of all global assistance.

The richest 15 of the 25 member states said they would each spend 0.51 per cent of their national budgets on official development assistance. They have also agreed to reach the UN target of 0.7 per cent by 2015. The other ten countries, who joined the EU last year, would strive to give 0.17 per cent, and 0.33 per cent by 2015.

The agreement means that collectively the European Union will spent 0.56 per cent of its budget on aid by the year 2010.

The news was welcomed by the International Development Secretary, Hilary Benn, who said that this was Europe at its best.

"Today's agreement also states that at least half of new aid should be spent in Africa, where we are seeing least progress towards the Millennium Development Goals."

Jonathan Glennie, senior policy officer for Christian Aid, said that the news was very welcome, and a vindication of all those who had campaigned so hard.

"It's a first step. But we also need trade justice, better aid, and to drop the debt," he said.