Brussels, 17/11/2010 (Agence Europe) - Five ACP countries (Africa/Caribbean/Pacific), linked to the European Union through the Cotonou agreement, can count on financial assistance from the EU for fighting against the consequences of the global economic crisis of which some of their members are the most vulnerable victims.
On 16 November, the European Commission announced a decision approving funding of €48.5 million in support of three countries in Africa: Lesotho (€21 million), Benin (€13 million), Cap Verde (€9 million), and one country in the Pacific: Samoa (€5.5 million).
This funding will help to increase the budgetary support programmes in these countries and subsequently enable the respective governments to maintain their level of public spending in priority areas, particularly the social sectors.
The different payments will be released under the FLEX vulnerability (V-FLEX) mechanism, which had an envelope of €500 million for 2009-2010.
This EU rapid response instrument, set up in 2009, is aimed at providing aid to the countries most affected by the economic slowdown, due to their low resistance to external shocks. V-FLEX provides targeted subsidies at short notice and completes the aid granted in the form of loans from the World Bank, the International Monetary Fund and other regional development banks, which helped devise this tool. Beneficiary countries had made prior requests for aid.
They were deemed eligible because they have a high degree of vulnerability at economic, social and political levels, and a sufficient capacity for absorbing these funds. The Commission explained that these countries also advocate “good practices for combating the crisis”. (A.N./transl.fl)