Mediterranean partners to benefit
from over €850 million in EU grant support in 2005
The European Commission’s aid to
Mediterranean partners will exceed €850 million in 2005.
Most aid will be delivered through the MEDA programme.
The aid package demonstrates the EU’s continued
commitment to the region’s development. This is in
addition to around €2 billion annually in loans.
The Commissioner for External Relations and European
Neighbourhood Policy, Benita Ferrero-Waldner said
“Nowhere in the world do we have a better record! Our
assistance to our Mediterranean partners is very
substantial, underlining the importance we attach to our
relationship with these neighbours of the EU. Around
half goes to support crucial reform programmes promoting
better governance and greater prosperity. We are now
delivering this aid more efficiently than ever before,
and more rapidly than in any other region”.
The highlights of the Commission’s
2005 support to the Mediterranean countries are:
Algeria, €40 million
The 2005 package covers the areas of water sector
development (€20 million) and the modernisation of
border police (€10 million). Building on an earlier
successful project, new support to civil society
(€10 million) has been agreed by means of funding
over 150 projects proposed by local NGOs.
Egypt, €110 million
Egypt continues to be one of the main beneficiaries
of the MEDA programme. In 2005, the MEDA allocation
is €110 million, which bring total funding under
MEDA since the year 2000 to €463 million. The main
beneficiary of the 2005 package is the water sector
which receives €80 million for its reform programme.
The aim is to support institutional and legal reform
of a sector which is key for the future development
of the country. In addition €25 million has been
made available in support of the implementation of
the Association Agreement concluded between Egypt
and the Union, with a view to the upgrading of the
institutional capacity of the Egyptian
administration in dealing with all aspects of the
EU-Egypt Association Agreement.
Jordan, €58 million
Jordan’s endeavour to make its private sector more
competitive is supported by a MEDA ‘sector reform
facility’ for an amount of €40 million. The
programme foresees concrete measures to strengthen
the private sector as well as the government’s
capacity to provide services in support of trade and
investment. Jordan will also receive €15 million in
support of the implementation of the EU-Jordan
Association Agreement. Lastly, the reforms in the
area of governance will be supported with €3 funds
to promote human rights, independent media and the
development of civil society.
Lebanon, €27 million
At the time Lebanon is entering a crucial phase
following the June 2005 elections, the Commission
has allocated €14 million to assist the Government
in defining and implementing its reform priorities.
Part of this support goes to reinforcing local
democracy. Other components of the 2005 programmes
are civil society support (€3 million),
strengthening the management of the water sector (€5
million) and vocational training with a view to
improve the functioning of the labour market (€5
million).
Morocco, €135 million
The main component of the 2005 assistance to Morocco
is €90 million to fight precarious housing, which is
complementary to a loan provided by the EIB; to
continue supporting the Northern Province with an
initial fund of €15 million to improve its rural
roads; €15 million to continue supporting the
implementation of the EU-Morocco Association
Agreement; an extra allocation of €5 million to
support the professional associations; and €2
million to provide training in developing a national
democracy and human rights strategy, an EU priority.
Syria, €22 million
Building on the successful Syrian-European Business
Centre Programme, creating a national SME (small and
medium enterprises) support institution is the next
phase in EU-Syria co-operation in this key area. The
new MEDA project will support a new non profit
making association that will be work to develop the
SME sector (€15 million). Contributing to an
environment conducive to an enhanced role of civil
society is the main objective of a new Civil Society
Development Programme (€2 million).
Tunisia, €118 million
With an amount of €118 million, Tunisia is one of
the most important beneficiaries of the MEDA
programme in 2005. Improving the environment for
business, reforming the financial sector and
reinforcing the macro-economic framework are the
three components of a new joint programme with the
World Bank and the African Development Bank; MEDA
will contribute to this programme an amount of €78
million. Education remains a high priority in
EU-Tunisia co-operation. After successful EU-Tunisia
co-operation programmes in the areas of basic and
higher education as well as vocational training,
co-operation is now extended to secondary education
(€30 million). The new sector reform programme will
contribute to a better quality of as well as a more
modern system of secondary education in Tunisia.
Introducing ITC is also an element of the programme.
West Bank and Gaza Strip, €121
million
As in earlier years, West Bank Gaza continues to an
important recipient of EU aid. Under the 2005 MEDA
programme an amount of €70 million has been made
available in support of the World Bank-managed
Public Finance Management Reform Trust Fund. In
addition West Bank Gaza benefits from financial
support of an amount of €50.75 million under the
so-called Peace Process Budget line. With a view to
addressing urgent infrastructure needs following
Gaza disengagement, it has been decided to make
available financial support for an amount of €40.55
million. Various health, education and cultural
initiatives will equally be supported (€ 9 million)
It should also be highlighted that the Commission
provides through various channels (Echo, UNWRA,
NGOs) emergency assistance, and food and
humanitarian aid. In total it concerns in 2005 an
amount of approximately € 120 million.
Regional co-operation, €116
million
As in earlier years, regional MEDA initiatives
continue to be a priority for co-operation. A key
2005 regional programme is a €60 million
contribution to the EIB’s risk capital facility.
Through this facility the EIB contributes to the
development of financial markets in the
Mediterranean partner countries. This comes in
addition to a €25 million contribution for technical
assistance under FEMIP.
Other important project under the 2005 regional
strategy are: the support to the Anna Lindh
Foundation (€5 million), a €5 million contribution
to the Euro-MED Youth Programme, a new €10 million
contribution for Middle East Peace Projects, and
support to various New Neighbourhood Initiatives
such as the promotion of a Euro-MED airspace (€5
million), a joint Israel-Palestine transport office
(€2 million), a project that promotes co-operation
between local authorities on both side of the
Mediterranean (MED-PACT, €5 million) and a new
transnational-cross border programme (€9.4 million).
Finally, support to the TEMPUS programme continues
under the 2005 MEDA’s regional co-operation
programme with an allocation of €12 million.
Background
Since 1995 the European Union has been providing
assistance to Mediterranean countries through the MEDA
programme. For the period 1995 to 2006 it concerns a
package of almost €9 billion in grant support. In
addition the EIB provides loans to the countries of the
region for an amount of €11 billion.
