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European Parliament: no EU cash for undemocratic neighbours

Monday, May 28
Emergency financial assistance from the EU for cash-strapped neighbours must depend on respect for human rights and democracy, the European Parliament said on Thursday. MEPs also oppose plans to cut Parliament out of future decisions on granting this aid.

MEP Metin Kazak, author of Parliament’s position on the proposed new macro-financial assistance regulation, said in the debate: "Too often in the past this assistance has been granted with little concern for EU values, as with the assistance granted to Ukraine in 2002 and Tajikistan in 2000."

"My report is clear, only those countries with a strong commitment to the strengthening of democratic institutions, human rights, transparency and the fight against corruption should receive emergency loans and grants from the EU," said Kazak.

Parliament hopes that the regulation will be amended to ensure that countries close to the EU, in practice chiefly in the Balkans and the Eastern Neighbourhood, will be obliged to meet stricter conditions in order to get cash injections They must commit to using the money they receive for measures such as fighting forced child labour or poverty or corruption.

MEPs also slam the Commission's plans to cut Parliament out of the decision-making process. They stress that they must continue to have a say in each individual decision on micro-financial assistance, in order to retain democratic oversight, as well as ensuring that the countries get their money promptly and efficiently.

The EU has been helping out countries with serious, short-term financial difficulties since 1990. This supplements other programmes, such as International Monetary Fund aid. Twenty-three countries have benefited so far from a total of EURO 7.2 billion. Armenia, Ukraine and Moldova are recent recipients.
(EU Neighbourhood Info)



EIB continues to support smaller projects in Eastern Partnership countries

The European Investment Bank (EIB) is providing a grant of up to ˆ4 million to ProCredit Holding’s subsidiaries in Georgia, Armenia and Moldova, consisting of interest subsidies for the final beneficiaries, as well as credit enhancement on the loans in question.

This grant builds on the EIB’s successful cooperation with the ProCredit group, which operates in the Eastern Partnership countries. In October last year, the EIB signed credit lines totalling ˆ50 million with ProCredit’s subsidiaries in Georgia, Armenia and Moldova to support smaller-scale project financing in those countries. The ProCredit group consists of 21 growing banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa.

The EIB grant agreement of up to EURO 4 million with the ProCredit group was concluded under the Eastern Partnership SME Finance Facility, in the context of the EU-funded Neighbourhood Investment Facility. It will enable interest rates on loans to small and medium-sized enterprises to be subsidised. It is envisaged that the final beneficiaries of EIB loans will receive up to 10% of their loans interest-free. In addition, the 10% grant-funded loan will act as a funded-loss risk sharing cushion for the ProCredit subsidiaries.

The Grant Agreement for the Eastern Partnership SME Finance Facility was signed in Vienna yesterday, on the occasion of the EIB Conference entitled “Eastern Partnership for Growth”. This Conference covered three main topics relevant for this area: regional economic prospects and priorities, local private sector development and infrastructure for economic development.
(EU Neighbourhood Info)



Georgia and Moldova: Final conference on sustainable tourism project to take place in June

The final conference of a two-year project called ‘Sustainable Tourism - An integrated approach to the development of sustainable tourism products’, funded under the EU's CIUDAD programme, will be taking place in Kutaisi, Georgia, on 29 June.

According to a CIUDAD press release, tourism is an increasingly significant part of the Georgian and Moldavian economies. In looking to further develop this, Kutaisi in Georgia and Ungheni in Moldova are mindful of the need to do so in a way that is sustainable and environmentally friendly – finding a balance between the needs of the visitor, the environment and the host community for current as well as future generations.

The purpose of this project has been to enable these countries to learn from the experiences and successes of their Italian partners in the north Adriatic area.

The CIUDAD programme runs from 2009 to 2012 and co-finances 21 local grant projects in the Neighbourhood's South and East. The projects reflect the overall objective of CIUDAD and in particular the following themes:
• Environmental Sustainability and Energy Efficiency
• Sustainable Economic development and reduction of social disparities and
• Good governance and sustainable urban development planning.
(EU Neighbourhood Info)