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Europe Daily Bulletin No. 13852
EXTERNAL ACTION / Ethiopia

EU resumes payment of its direct budget support, suspended since 2021

On Monday 20 April, the European Commissioner for International Partnerships, Jozef Síkela, opened an ‘EU-Ethiopia’ business forum, which is expected to bring together around 500 participants until Wednesday in Addis Ababa. On this occasion, he announced the mobilisation of several targeted financial supports and the official resumption of EU budget support to Ethiopia, which has been on hold for over six years due to the conflict in Tigray (see EUROPE 12638/18).

This unlocks an important package of over €140 million to support our shared priorities in energy, improving the business climate, health, and connectivity”, said Mr Síkela on Monday, during a visit to Ethiopia.

The effective suspension of the EU budget to Ethiopia dates back to January 2021, when, against the backdrop of the crisis in the north of the country, the EU made payment of the planned European budget conditional on sufficient humanitarian access and respect for fundamental rights.

We are resuming [this support] as a clear signal of our confidence in the reforms this government is pursuing and our commitment to this partnership for the long term”, stressed Commissioner Síkela.

‘Digital economy’ package. The Commission has also pledged €150 million to support a joint framework for developing digital infrastructure, building skills, and strengthening digital governance.

Agriculture and rural life. The European Investment Bank (EIB) has also signed two new loans. €20 million will be lent to the Zemen Bank to provide affordable credit to agri-food businesses and small farmers, while a loan of €110 million will be earmarked for rural financing, for households, women and small businesses, said the Commissioner.

Proposal to repeal restrictive visa measures. On Monday, alongside these events in the Ethiopian capital, the European Commission proposed to cancel a decision taken by the Council of the EU in 2024 suspending certain visa facilities for Ethiopian nationals pending an improvement in EU-Ethiopia cooperation on the readmission of illegal migrants.

The Commission now notes a “substantial and lasting improvement” in this cooperation, particularly as regards the identification of Ethiopian nationals illegally staying on the territory of the Member States, in the issuance of emergency travel documents and in the regular organisation of return operations.

See the proposal to repeal restrictive measures: https://aeur.eu/f/lly (Original version in French by Bernard Denuit)

Contents

EXTERNAL ACTION
SECTORAL POLICIES
ECONOMY - FINANCE - BUSINESS
SOCIAL AFFAIRS - EMPLOYMENT
NEWS BRIEFS