EC, Eritrea sign deal on aid

The European Commission has agreed in principle to resume development aid to Eritrea, after a 14 month hiatus, if dialogue with the Eritrean government leads to concrete political reforms. "This is the first step, after the difficulties we’ve had in the past … toward a political dialogue," Athanassios Theodorakis, deputy director-general of the commission, said at a news conference on Thursday, in Asmara, the Eritrean capital. The commission suspended all development aid to Eritrea in September 2001, after the government detained 11 of the founding members of the countries only political party, the People’s Front for Democracy and Justice; closed the private media; and detained at least 12 journalists. If implemented, the agreement to provide 88 million euro (US $ 1 euro = US $1.0042) in development aid over the next five years – another 8.8 million euro that can be drawn on for emergency assistance, debt relief and compensation for loss in export earnings – would be the largest aid allocation the commission has made to Eritrea. Since independence on 24 May 1993, the commission has given Eritrea 55 million euro in development aid. Along with the verbal commitment of new aid, 27 million euro earmarked for the demobilisation of soldiers that was suspended in 2001 has been unfrozen. The commission has urged the government to quicken the pace of demobilization. Commission officials say they expect the money to be available before the end of the year. The agreement on Thursday came in spite of the government’s unwillingness to reverse its controversial political policies of recent months. Asmara has also frequently shown a reluctance to accept any offer of aid tied to political reforms. Theodorakis said if the commission and the government failed to reach an understanding on political issues, disbursement of the aid would be difficult. He said the commission had set no timescale for the political talks to show progress; and that beyond an acceleration of the demobilisation process he would not specify the political areas of concern to the commission. However, he said the EC was informed by the conditions outlined in the Cotonou Agreement - a legal framework that dictates the commission’s policy towards developing nations. The Cotonou Agreement requires aid recipients to protect and promote of human rights, institute democratic reforms, and ensure the independence of the private media. If implemented, the commission’s development package - designed to support Eritrea’s efforts to reduce poverty and promote economic and social development - would go to three areas: post-conflict rehabilitation, including humanitarian aid, reconstruction of social and transport infrastructure and demining; support for demobilisation and reintegration of war-affected people; and support to the development of sectors such as food security, transport and education that are seen as key structural constraints for development.