Aid for Lebanon
January 25, 2007
Commission President Jose Manuel Barroso said he would pledge the money at the international donor meeting, which will take place in Paris on Thursday.
"This is our signal of commitment to Lebanon and to the peace process in the Middle East," Barroso told a news conference.
The commission said that the EU package included 300 million euros in assistance for socio-economic and political reforms, the economic recovery of Lebanon, de-mining activities and Palestinian refugees in Lebanon. An additional 100 million euros will be given to Lebanon in grants and loans, commission officials said.
The EU aid package is designed to cover the period until 2010 and will concentrate on help for fiscal reform and public finance management, better conditions for private business, job creation and social development.
Help to recover
The commission said the EU wanted to help Lebanon cover the costs of last summer's war between Lebanese Shiite militia group Hezbollah and Israel, which crippled the economy.
However, the EU was also seeking to lay the groundwork for a longer term recovery through support for crucial political and economic reforms.
"Now it is time to move ahead and to tackle the political and economic reforms necessary," Barroso said in a statement. "The reform agenda that the Lebanese government has designed is an important step and I look forward to our discussions tomorrow on how the international community can best support the Lebanese people inpursuing their goals."
The EU has so far collectively donated 100 million euros, including humanitarian assistance, to Lebanon.
French loan
French President Jacques Chirac meanwhile pledged to loan 500 million euros ($650 million) to Lebanon during talks in Paris with Lebanese Prime Minister Fuad Siniora, the presidency said.
"France will bring Lebanon its support in the form of a 500-million-euro loan, extended on highly preferential terms," a spokesman said following their meeting.
Lebanese concerns
The Paris conference itself has become a new bone of contention with the opposition seizing angrily upon the cost of reforms promised in order to win pledges from foreign donors.
Under a proposed five-year plan, Siniora's government would implement a hike in value-added tax from 2008 and carry out several privatizations.
The conference will focus on three themes, how to kickstart the economy, improve living conditions for the Lebanese people and rein in the country's debt, over five years, from 180 to 144 percent of gross domestic product.