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EU Backs Aid Push, Monitors For Georgia

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  • EU Backs Aid Push, Monitors For Georgia

    EU BACKS AID PUSH, MONITORS FOR GEORGIA
    By David Brunnstrom

    Reuters
    Sept 15 2008

    (Adds Belarus step, naming of EU special representative)

    BRUSSELS, Sept 15 (Reuters) - The European Commission said on Monday
    it would provide Georgia with up to 500 million euros ($700 million)
    by 2010 to aid its recovery after its conflict with Russia and hoped
    this would be matched by EU member states.

    Separately, EU foreign ministers sought to maintain pressure on
    Russia to withdraw its troops from Georgia by rubber-stamping plans
    to send at least 200 ceasefire monitors there next month in line with
    a ceasefire deal, an EU official said.

    As part of EU efforts to bolster ties with neighbours that share a
    border with Russia, ministers further held out the prospect of lifting
    sanctions on Belarus and increased contacts depending on the conduct
    of Sept. 28 elections there.

    EU External Relations Commissioner Benita Ferrero-Waldner said the
    "stabilisation and growth package" would go towards helping internally
    displaced people (IDPs), post-conflict rehabilitation and economic
    recovery and towards new infrastructure.

    "It will be 500 million of community money and we do hope by the way,
    this is normally the case, it will be matched by member states,"
    she told a news briefing as European Union foreign ministers met in
    Brussels to discuss the Georgia crisis.

    "We will want to address the concrete results of the conflict -- that
    means damage to infrastructure but particularly also help to IDPs and
    the knock on effects on the economy...on the economic confidence,"
    she said.

    Georgia has requested up to $2 billion in international aid to repair
    and develop infrastructure in the wake of the conflict in August,
    when Russia invaded in response to Tbilisi's attempt to retake one
    of its separatist provinces.

    The United States has already pledged $1 billion in humanitarian and
    economic assistance to help rebuild Georgia.

    The International Monetary Fund has warned of the risk of damage to
    investor confidence and has agreed in principle to lend Tbilisi $750
    million to soften the economic impact of the conflict, which the
    government has said may slash growth to less than half its 2007 rate.

    HELP THE NEIGHBOURS

    Ferrero-Waldner said EU funding for this year would be 100 million
    euros and that the EU executive wanted to help stage an international
    donors' conference for Georgia. Officials see the event taking place
    in Brussels next month.

    She added it would be necessary to support states whose economies had
    been indirectly hit by the conflict, such as Armenia and Azerbaijan,
    and Moldova and Ukraine.

    "What we do will be crucial in recalibrating the partnership with a
    more assertive Russia and in supporting Georgia."

    Ministers meeting in Brussels also picked French diplomat Pierre
    Morel as EU special representative to Georgia. He already holds the
    same post for Central Asia.

    Russia sent in troops early last month after Georgian forces tried to
    retake South Ossetia, a breakaway pro-Russian region. Moscow said it
    acted to prevent "genocide" there, but Western states accused Russia
    of a disproportionate use of force.

    Russian bombing raids hit mainly military targets, but Georgia also
    reported considerable damage to civilian infrastructure and risks to
    economic growth and investment.

    The EU monitors will initially be stationed in Georgia proper but the
    European Union hopes eventually to station them in the separatist
    areas of South Ossetia and Abkhazia, which the bloc insists are
    part of Georgian territory despite Russian recognitions of their
    independence. (Editing by Richard Balmforth)
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