Iraq: European Commission prepares new €200 million assistance package

Following the nomination of the new Iraqi government on Saturday, the European Commission will make available of €200 million to continue supporting the reconstruction of the country in 2006. This new contribution comes on top of the already allocated €518 million provided between 2003 and 2005 and demonstrates the Commission's determination to support the country, the new Iraqi government and the Iraqi people. The Commission will also soon step up its presence in Baghdad and will nominate a Head of Delegation. With the new government in place the Commission expects to launch negotiations for a Trade and Cooperation Agreement in the near future.

Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner, commented: "I am very pleased to see the new Iraqi government formed based on the concept of national unity. We are ready to start working with this new government. We need to discuss how our 2006 assistance programme can help to support Iraq in tackling the challenges facing the new government. I also invite the new government to consider the offer to start the negotiations for a Trade and Cooperation Agreement. We intend to continue being a significant partner for the Iraqi administration and its people."

The Assistance Programme comprises three key elements and a reserve fund:

Improving the quality of life of Iraqis (€110 million) through the restoration and rehabilitation of key social and economic services to the Iraqi population. It is proposed that this money will be channelled to the International Reconstruction Fund Facility for Iraq (IRFFI) multilateral trust fund managed by the World Bank and the UN. The focus will be on supporting activities to restore and strengthen delivery of education and health services, increasing employment opportunities, and developing administrative capacity in the Iraqi administration. This support will be important in helping the new government meet the needs and expectations of the Iraqi population.

Furthering democracy in Iraq (€40 million) by providing support to the political process: assisting the newly elected government in an inclusive constitutional review and in its subsequent implementation, support governorate and local elections, and referendum on constitutional review.

Promoting good governance (€40 million) through institutional strengthening in the field of civil service reform in key line ministries, rule of law, financial institutions, trade and energy.

Reserve (€10 million) to ensure flexibility in order to adjust to new government priorities and the situation on the ground

The 2006 programme marks a continuation of support to Iraq. Notably, the Commission has been the most significant donor to supporting Iraq's political transition. As part of this assistance package, the Commission will offer to support the review and implementation of the Constitution in collaboration with the UN.

More information:

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

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• Statement by EU Commissioner Ferrero-Waldner on the passing of Saddam Hussein (30/12/2006)
• Iraq and the EU - EU Parliament calls for more engagement (27/11/2006)
• EU Presidency Statement - UN High-Level Meeting on Iraq (18/9/2006)
• EU Council Conclusions on Iraq  (15/9/2006)
• EU Presidency Declaration - International Compact with Iraq  (1/8/2006)
• Declaration by the Presidency on behalf of the EU on the formation of the government in Iraq  (22/5/2006)
• Statement by EU Commissioner Ferrero-Waldner: Appointment of new Iraqi Government  (22/5/2006)