European Commission allocates €18 million to Timor Leste

The European Commission has decided to provide €18 million over 2006-2007 to help reduce poverty in Timor Leste. This funding is concentrated in two areas: €12 million to promote growth in poor rural areas and improve the lives of people living there, and €6 million to build the capacity of the Government to manage their resources.

The Commission's rural development programme aims to make sure people in rural areas have enough to eat by increasing their agricultural output and access to markets. Two thirds of the population of Timor Leste live in rural areas, where 40% of people are poor (compared to 14% in the cities). The funding will also help to build village infrastructure so communities have better access to clean water and basic services. The programme supports the Government of Timor Leste's investment in agriculture, forestry and fisheries.

The €6 million programme for capacity building will strengthen the ability of the Government to manage Timor Leste's growing resources in an open and sustainable way. For example, the Commission will support the Government to prepare and implement a trade policy. The programme will prepare Timor Leste to make the most of funds the European Comission will allocate in the next budget round of 2007.

This programme will also support the Government's efforts to widen participation in the next general election in 2007. These elections will be crucial to the stability of Timor Leste, which remains politically fragile.

Timor Leste's recent history has made it one of the least developed countries in South East Asia. Since independence in May 2002, Timor Leste has made remarkable progress towards building a strong and well governed country. The Commission's new Country Strategy paper is based on the country's economic and social needs and the priorities of the Government of Timor Leste

| Arriba |

• Timor-Leste: EU Commission supports stabilisation (6/10/2006)
• EU Presidency Statement - Security Council: Debate on Timor-Leste (15/8/2006)
• European Commission welcomes the appointment of José Ramos-Horta as the new Prime Minister of Timor-Leste (12/7/2006)
• European Commission allocates €3 million for victims of internal conflict in Timor Leste (28/6/2006)
• EU Presidency Statement - Security Council Public Meeting on Timor-Leste (5/5/2006)
• EU Presidency Statement - UN Security Council Public Meeting on UN Office in Timor-Leste  (23/1/2006)