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The Commission approves cooperation actions for Morocco, Egypt, Lebanon, Jordan and Algeria

Summary: September 5, 2003: The Commission approves cooperation actions of EUR 314 million for Morocco, Egypt, Lebanon, Jordan and Algeria (Brussels)

On 22 and 25 August 2003 the European Commission approved funding of € 314 million for cooperation and external aid operations in Morocco, Egypt, Lebanon, Jordan and Algeria. Cooperation with Morocco (€ 141 million) will focus on trade development and business modernisation, migration management and environmental protection. Cooperation with Egypt (€ 63 million) will support the economic transition process and strengthen the socioeconomic balance. Cooperation with Lebanon (€ 43 million) will cover integrated support for SMEs, the strengthening of quality management, agricultural development and support for civil society. Cooperation with Jordan (€ 42 million) will comprise emergency budgetary support to alleviate the impact of the war in Iraq, the EJADA Industrial Modernisation Programme and the Al Meyah Programme to support water resource management. Cooperation with Algeria (€ 25 million) will be channelled mainly into a modernisation and assistance programme for administrative reform. These operations come under the 2003 National Financing Plans of the MEDA Programme.

Morocco

Community cooperation with Morocco will focus on the three priorities of trade enhancement and modernisation of businesses, migration management and environmental protection. With a budget of € 96 million provided in the form of direct budgetary aid, reforms under the transport reform support programme will strengthen the road, maritime and air transport sectors. This will require the updating of the legislative and institutional framework with a view to liberalisation of the sector and opening up to private competition, at the same time strengthening the regulatory power of the state. The Commission allocated € 40 million to the Border Control Management project with the aim of improving migration management by combating illegal immigration of origin and transit more effectively. The Commission also decided to assign € 5 million to the Institutional Support for the Movement of Persons project, which seeks to improve the management of the legal movement of workers between the EU and Morocco by strengthening the appropriate institutional structures.

The 2003 National Financing Plan represents a financial allocation of € 141 million, bringing total MEDA allocations to Morocco to € 1 179.6.

Egypt

To improve the living conditions and social integration of the economically most vulnerable population groups - mainly young people - while increasing the resources of NGOs in the social development field, the Commission decided to finance a project entitled "Social development and Civil Society: Children at Risk" to the tune of € 20 million. The Commission will also finance two projects to support the financial sector and investment:

Under the TEP (Trade Enhancement Programme), the Commission decided to allocate € 6 million to the Egyptian customs reform programme. € 2 million is to be allocated to the promotion of the Association Agreement recently ratified by the Egyptian Parliament.

This 2003 National Financing Plan represents a financial allocation of € 63 million, bringing total MEDA allocations to Egypt to € 879.7 million.

Lebanon

Against the background of the ratification of the Association Agreement with the European Union in December 2002, the projects in the 2003 National Financing Plan for Lebanon build on operations already carried out and aim to implement the sectoral reforms essential to the modernisation of the economy and introduce the institutional developments necessary to ensure lasting benefits from the Association Agreement. The Commission decided to allocate € 17 million to the integrated support project for SMEs, which aims to shape a coherent support strategy for the establishment of a service provision network.

The Commission also decided to allocate € 15 million to the quality management support programme in order to help frame a national quality strategy with an appropriate legal framework to improve institutional capacity throughout the quality chain and establish a centre of excellence in the field of quality for companies.

In the rural sector, the Commission decided to finance an agricultural development project to the tune of € 10 million to improve the market-garden production of fruit and vegetables. Finally, under the programme to strengthen civil society, the Commission decided to allocate € 1 million in aid to Lebanese civil society.

This 2003 National Financing Plan represents a financial allocation of € 43 million, bringing total MEDA allocations to Lebanon to € 237 million.

Jordan

The suspension of trade with Iraq, Jordan's main export market, has had a significant economic impact on the Jordanian economy. To alleviate the repercussions of the neighbouring conflict on Jordan's population and economy, the 2003 National Financing Plan takes accounts of this factor, to help the Government overcome the consequences of the war and cope with the rise in public expenditure.

Against this background the Commission decided to provide emergency budgetary aid of € 35 million in the form of direct budget support designed to offset the negative effects of the war and help maintain the country's economic stability. To assist private sector development the Commission also plans to allocate an additional € 5 million to the Industrial Modernisation Programme, designed to organise and support the development of a national assistance programme for SMEs.

In the water sector, the Commission decided to finance the "Al Meyah" project: support for the management of water resources in Jordan. With a budget of € 2 million to support the Jordanian authorities' efforts towards modern, efficient and profitable management of water resources, the Al Meyah project also aims to reform the sector by encouraging the long-term participation of the private sector.

This 2003 National Financing Plan represents a financial allocation of € 42 million, bringing total MEDA allocations to Jordan to € 423 million.

Algeria

With the need to step up financial and macro-economic structural reform of the Algerian economy the preparation for the future free-trade area, the Commission has increased the budget for the modernisation and technical assistance programme for administrative reform to € 25 million. The programme, which aims to improve the administrative and regulatory environment for business, will specifically help to modernise the administrative environment and instruments applying the laws relating to economic and trade activities. The programme has two components: the first aims to modernise the Finance Ministry's revenue divisions, while the second provides for a series of one-off trade facilitation operations for the Ministries of Agriculture, Trade and Transport.

This 2003 National Financing Plan represents a financial allocation of € 25 million, bringing total MEDA allocations to Algeria to € 345.2 million.

MEDA

Launched in 1995, the MEDA Programme is the EU's main financial instrument for implementing the Euro-Mediterranean Partnership. Bilateral cooperation with partner countries focuses on certain key priorities: support for democratic pluralism and respect for human rights and the universal principles underpinning the rule of law; the implementation of Association Agreements and major structural reforms supporting economic transition and the private sector with a view to the creation of a future Euro-Mediterranean free-trade area; the strengthening of basic social services; and the promotion of sub-regional cooperation with a view to better South-South integration.


For further information on MEDA, see:

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



  • Ref: EC03-241EN
  • EU source: European Commission
  • UN forum: 
  • Date: 5/9/2003


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See also
 

European Union Member States