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Europe Daily Bulletin No. 8192
THE DAY IN POLITICS / (eu) eu/afghanistan

General Affairs Council reaffirms EU's commitment towards Afghanistan and urges for establishment of monetary framework to guarantee correct use of funds

Luxembourg, 15/04/2002 (Agence Europe) - In Luxembourg, on Monday, EU Foreign Ministers approved conclusions that reaffirm the European Union's commitment to contribute to the political process and to the institutional and economic rebuilding of Afghanistan. The Council recalls its attachment to the sovereignty and territorial integrity of Afghanistan as well as its requests concerning the respect, by the Afghan administration, of democratic principles, human rights and the commitment of the Afghan authorities to ensure internal security, maintain friendly relations with neighbouring countries, prevent its territory from being used by terrorist organisations, eliminate opium crops and fight against drugs trafficking. The EU will provide aid for the establishment of the Loya Jirga and hopes that all forms of intimidation, pressure or manipulation will be avoided, states the Council. It takes a stance in favour of deploying Afghan and international observers in order to guarantee the process is fair. The EU offers its aid to the interim administration for the reorganisation of the legal system and of other mechanisms necessary for the respect of the rule of law and human rights. The Council mainly insists on women's rights. It welcomes the intention expressed by High Representative Javier Solana and Commissioner Chris Patten to go to Kabul in the very near future.

The Council also notes that the "sustainable economic development and effective use of donors' contributions requires the urgent setting in place of transparent monetary arrangements and budgetary and treasury systems" and it adds that the EU will insist that Afghan authorities, in cooperation with the IMF, and in cooperation with the IMF, rapidly establish a macro-economic and global monetary framework. According to Commission services, the best solution would be to use the dollar in establishing and executing the budget, as this would not hamper the circulation of local currency. This solution, adopted for Kosovo, is also approved of by the IMF but the Afghan authorities recently called on the IMF for its aid in resolving technical problems linked to the execution of the budget in afghanis. The Commission services consider that such a solution could take more time and entail delays in the payment of the salary component (EUR 14 million) of the EUR 20 million in direct aid recently transferred to the United Nations fund. It could also slow down any decisions concerning additional direct EU aid to the Afghan budget.

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A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
WEEKLY SUPPLEMENT