EU assistance to Mercosur

The European Commission adopted today new co-operation strategies for the Mercosur countries - Argentina, Brazil, Paraguay, Uruguay -, with indicative funding totalling up to € 200 million for the period 2002-2006. Priorities for EC support programmes will be support for regional integration, economic reform and promotion of trade capacities, social development and poverty alleviation, modernization of the state, and protection of the environment. These major support programmes, embedded in new Country Strategy Papers, are endowed with € 65.7 million for Argentina, close to € 64 million for Brazil, up to € 51.7 million for Paraguay and € 18.6 million for Uruguay.

Commenting the adoption of this package, President Romano Prodi said: "Reinforced integration will allow Argentina, Brazil, Paraguay and Uruguay to overcome present difficult times. As our experience in Europe has proven, it will allow Mercosur to transform itself into a strong community of nations based on common values of democracy and social justice, offering its citizens new opportunities and prosperity. Last week in Rio, Chris Patten and Pascal Lamy with their Mercosur counterparts injected new momentum into our ambitious inter-regional association negotiations. Today's decision is another sign of the EU's long-term commitment to Mercosur."

Commissioner for External Relations Chris Patten stated "Each nation's stability, prosperity and security is dependent on the international community's approach to matters which extend beyond national borders. The EU itself stands as a testimony to this interdependence, as does the evolution of Mercosur. Let us now join forces in tackling structural causes for instability. The fruits of two decades of democracy and market liberalization must be preserved, while promoting more accountable public institutions, increased international competitiveness and fighting poverty and environmental degradation."

This reaffirmation of EU support for the Mercosur process comes at a crucial time for the region. All Mercosur countries, including Uruguay and Paraguay, are currently being affected by the repercussions of the Argentinean crisis and are going through difficult times. Mercosur is of strategic interest to the European Union and the Commission has supported Mercosur from its very foundation in 1991. Negotiations on the first inter-regional association agreement ever concluded are being intensified between the EU and Mercosur. A ministerial meeting was held between negotiators from both sides in Rio de Janeiro on 23 July 2002 to inject new impetus into the ambitious programme of trade negotiations. (For further information see European Commission press release IP/02/1147 of 24 July 2002).

In recent days renewed financial turbulence has hit the Mercosur region, in particular Brazil and Uruguay. The European Commission is confident that these countries will be able to weather the current storm and trusts that the existing good relationships between the IMF and Brazil and the IMF and Uruguay will deliver positive results for each of the countries and the entire the region. The European Commission considers that continued support for and solidarity with Mercosur countries should be shown by all partners at the present time, based on governments concerned implementing responsible economic policies.

Separate press releases are available with regard to the country strategies for:

Argentina:

Brazil: IP/02/1190

Paraguay:IP/02/1191

Uruguay: IP/02/1192

For bilateral relations with Mercosur:

http://europa.eu.int/comm/external_relations/mercosur/intro/index.htm

For cooperation programmes with Mercosur:

http://europa.eu.int/comm/europeaid/projects/index_en.htm

For trade relations with Mercosur:

http://europa.eu.int/comm/trade/bilateral/mercosur/mercosur.htm

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