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Europe Daily Bulletin No. 7879
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GENERAL NEWS / (eu) eu/lebanon

During his meeting with Lebanese Minister Basel Fuleiham, Commissioner Patten confirmed European support for Lebanese fiscal reforms and aim of concluding partnership agreement in next six months

Brussels, 11/01/2001 (Agence Europe) - The European Commissioner for External Relations, Chris Patten, confirmed during his meeting with the Lebanese Minister for the Economy and Trade, Basel Fuleiham, this Thursday in Brussels, that the aim of the European Union is to conclude within the next six months the negotiations on the Euro-Mediterranean partnership with Lebanon. The Minister spoke of three months. This issue will be at the centre of the visit by the European Commission President, Romano Prodi, to Lebanon, Jordan and Syria, at the start of February.

Solicited by the Lebanese Minister, Commissioner Patten confirmed that the EU will continue to support the fiscal reforms, started in Lebanon to reduce its dependency with regards to the customs revenues by introducing a VAT regime. The European Commission approved, last May, a structural adjustment facility of EUR 50 million, of which 30 million have already been freed, the second slice of EUR 20 million should be so soon. Furthermore, Commission should soon approve an aid of EUR 1.9 million to finance a technical assistance to the Lebanese Ministry of Finance. "The courageous initiative of the Lebanese authorities will allow for a general reduction in customs duties and facilitate the negotiations", noted the spokesperson for Commissioner Patten, Gunnar Wiegand. The European aid in the framework of the MEDA II programme (2000-2003), which will concentrate in Lebanon on economic and social reform. "The European support is however not a compensation for the reform of the fiscal system undertaken by Lebanon, as it was written", insisted the spokesperson.

Minister Fuleiham also asked the Commission to intensify its aid to Southern Lebanon. Commissioner Patten confirmed that the Commission decided to free EUR 10 million for the reconstruction, and has not excluded that the additional funds are dedicated to international mine clearance projects, as was requested by the Minister. Nevertheless, the EU cannot further engage itself in Southern Lebanon as long as the Lebanese authorities have not taken over full control, emphasised Chris Patten.

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