Lebanon: EU Commission presents €500m assistance package at Paris Conference

Summary: Lebanon: EU Commission presents €500m assistance package at Paris Conference (24 January 2007: Brussels)

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On Thursday 25 January, the President of the European Commission, José Manuel Barroso, and Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner, will participate in the International Donor Conference on Support to Lebanon in Paris. During the Conference, the European Commission will present a new assistance package bringing its total contribution since the conflict to around €500 million. This package, which will cover the period until 2010, demonstrates the Commission's commitment to provide assistance to Lebanon not only in immediate reconstruction work, but also by laying the groundwork for a longer term recovery through support for crucial political and economic reforms. The European Commission's long-standing co-operation with Lebanon has now been enhanced with the European Neighbourhood Action Plan, endorsed by Lebanon on 12 January. The EU-Lebanon Action Plan is an instrument which will help our assistance to target the implementation of the reforms recently approved by the Lebanese Government.

Before leaving for Paris, President Barroso stressed "Europe has made massive efforts to bring the tragic conflict to a standstill and to provide substantial emergency aid to Lebanon. Now it is time to move ahead and to tackle the political and economic reforms necessary. 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 in pursuing their goals."

Commissioner Ferrero-Waldner said: "At this delicate moment it remains imperative that all sides exercise restraint and that they settle their differences through dialogue." She added: "We are all committed to Lebanon. Tomorrow we will offer a new and substantial assistance package but money alone is not the key to success. Long-term recovery of Lebanon will require a number of important reforms that can only be achieved with national consensus on the reform agenda. The EU Lebanon Neighbourhood Action Plan is a precious instrument for us to accompany the country in its reform process and to deliver of our support in a targeted and structured way."

The financial assistance package is designed to accompany this Action Plan and will include:

• Assistance, totalling at least €300 million, focusing initially on support to socio-economic and political reforms; economic recovery of Lebanon (local development, reconstruction, infrastructure rehabilitation, support to SMEs); de-mining and clearance of unexploded ordnance; and assistance to the Palestinian refugees in Lebanon.

• Macro-financial assistance, in both grants and loans.

• European Investment Bank. Grants and loans to mobilise additional funds from the European Investment Bank, to fund private sector industry activities, tourism, information technology, services, health and education.

• Neighbourhood Investment Fund. Lebanon will also be eligible to draw on funds from this newly established Investment Fund, which is intended to attract financing for infrastructures, to boost investment and to support reform of key sectors in the EU neighbouring countries.

The Action Plan sets out a comprehensive set of priorities for joint work by the EU and Lebanese authorities at the political, economic, social and cultural level. Many of the priorities identified by the Government of Lebanon in its reform agenda are already explicitly addressed in the Action Plan: fiscal reform and public finance management, improving business environment, job creation, and social development. And these are the main fields that the Commission assistance will be covering in the next years. Other priorities can easily be integrated by mutual agreement. The Action Plan sets measurable objectives for action enabling the EU and the Lebanon to evaluate progress.

Background

Since the conflict of last summer, the EU has been one of the most active providers of assistance to Lebanon. In the first Lebanon Conference in Stockholm in August 2006, the Commission promised, and has delivered since then, more than €100 million for humanitarian assistance (€54 million), evacuation of people caught in the conflict (€11 million), and to cover short-term needs as requested by the Lebanese government (€42 million). In addition, the European Commission has also carried out detailed needs assessments and project identification mission in order to be able to prepare a coherent long-term assistance program.

For more information on the EU-Lebanon relations:
http://ec.europa.eu/comm/external_relations/lebanon/intro/index.htm

Ref: EC07-015EN
EU source: European Commission
UN forum:
Date: 24/1/2007

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