‘Meagre progress’ made on aid to Mediterranean

Date: 14/02/02

By David Cronin

Soliman Awaad complained that the EU gives ten times as much money to central and eastern Europe than it does to 'partner countries' in the Mediterranean basin.

Awaad believes the 'Barcelona process', which underpins EU links with the region, has been plagued by failures since it was launched at a 1995 conference in the Catalan capital.

A major shortcoming, he added, is that only 'meagre progress' has been made towards helping economic development. He blamed this on inadequate finance provided by the Union and violence in the Middle East discouraging investment.

Awaad supports the proposal by Spain's EU presidency to set up a new investment fund for the Mediterranean region but wants the idea fleshed out.

He said: 'The idea is good but the question 'what kind of bank?' has yet to be clarified by the Spanish presidency.

'Will it be an independent new bank or will it be affiliated to the European Investment Bank in Luxembourg or European Bank for Reconstruction and Development in London? The format doesn't matter so much as the bank's efficiency and ability to raise sufficient financial resources.'

Most of the EU's funding for the region comes through the MEDA programme. Some €879 million went to the area in the 2000 financial year.

EU efforts to boost investment in the Mediterranean region have been 'impaired' by insufficient resources, according to Egypt's ambassador to Brussels, Soliman Awaad.