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News Releases


No. 36/06
May 22, 2006
IRAQ: COMMISSION PREPARES ADDITIONAL €200 MILLION ASSISTANCE PACKAGE AND STEPS UP ITS DIPLOMATIC PRESENCE
Following the nomination of the new
Iraqi government on
Saturday, the European Commission will make available
€200 million to continue supporting the reconstruction
of the country in 2006. This new contribution comes on
top of the already allocated €518 million provided
between 2003 and 2005 and demonstrates the Commission’s
determination to support the country, the new Iraqi
government and the Iraqi people. The Commission will
also soon step up its presence in Baghdad and will
nominate a Head of Delegation. With the new government
in place the Commission expects to launch negotiations
for a
Trade and Cooperation Agreement in the near
future.
Commissioner for
External Relations and
European
Neighborhood Policy, Benita Ferrero-Waldner, commented:
“I am very pleased to see the new Iraqi government
formed based on the concept of national unity. We are
ready to start working with this new government. We need
to discuss how our 2006 assistance program can help to
support Iraq in tackling the challenges facing the new
government. I also invite the new government to consider
the offer to start the negotiations for a Trade and
Cooperation Agreement. We intend to continue being a
significant partner for the Iraqi administration and its
people.”
The Assistance Program comprises three key elements and
a reserve fund:
Improving the quality of life of Iraqis (€110 million)
through the restoration and rehabilitation of key social
and economic services to the Iraqi population. It is
proposed that this money will be channeled to the
International Reconstruction Fund Facility for Iraq (IRFFI)
multilateral trust fund managed by the World Bank and
the UN. The focus will be on supporting activities to
restore and strengthen delivery of education and health
services, increasing employment opportunities and
developing administrative capacity in the Iraqi
administration. This support will be important in
helping the new government meet the needs and
expectations of the Iraqi population.
Furthering democracy in Iraq (€40 million) by providing
support to the political process: assisting the newly
elected government in an inclusive constitutional review
and in its subsequent implementation, support
governorate and local elections and referendum on
constitutional review.
Promoting good governance (€40 million) through
institutional strengthening in the field of civil
service reform in key line ministries, rule of law,
financial institutions, trade and energy.
Reserve (€10 million) to ensure flexibility in order to
adjust to new government priorities and the situation on
the ground.
The 2006 program marks a continuation of support to
Iraq. Notably, the Commission has been the most
significant donor to supporting Iraq’s political
transition. As part of this assistance package, the
Commission will offer to support the review and
implementation of the Constitution in collaboration with
the UN.

Further Contact Information
Press and Public Diplomacy
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
http://www.eurunion.org/PressRoom
Tel: 202-862-9552
Fax: 202-429-1766
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