EC proposes additional assistance for Iraq (28/01/05)

The European Commission (EC) proposed a new EUR200 million ($260 million) aid package for Iraq on Friday, two days ahead of elections in the country, according to a statement by the commission.


The aid package is meant to "support the political and economic transition in Iraq," the statement said. European Union Commissioner for External Relations Benita Ferrero-Waldner said that the proposal means that the EU will be significant partners for the new Iraqi administration.

"2005 will be a critical year for Iraq and we remain committed to reconstructing the country under the newly elected transitional government, and to improving the political situation and the lives of the Iraqi people," she said.

The proposal comprises three key elements and a reserve fund: The three elements are EUR130 million ($169 million) to boost essential services and jobs, EUR15 million ($19.5 million) for technical assistance to help build Iraq's capacity in the important areas of energy and trade, and EUR10 million ($13 million) to support the political process, including help in drafting the new constitution.

The remaining fund will be held in reserve to allow a flexible response to changing circumstances on the ground and to respond to the needs identified by the new Iraqi government formed after the election on 30 January.