Brussels, 12/12/2003 (Agence Europe) - The day after vigorous protest against the selective nature of US contracts for the rebuilding of Iraq (see p.7 and yesterday's EUROPE, p.11), the European Commission announced on Friday that it had decided to make a first financial contribution to support rebuilding activities. Without waiting for the specific international fund proposed by the World Bank and the UN to get under way (no doubt next year), the allocation of EUR 29 million (out of the EUR 200 million promised in October, in Madrid) from the Community budget will be administered through a rapid payment mechanism, namely the United Nations Development Programme Thematic Trust Fund for Crisis Prevention and Recovery. Europeans thus hope to support the efforts made by UNDP, UNICEF and the WHO with a view to establishing certain basic social services in Iraq, such as water supplies and sanitation, education and healthcare, while implementing projects that generate subsistence means and revenue for the Iraqi population, the Commission spokesman stresses. Commissioner Chris Patten said for his part he was "glad that just a few weeks after the Madrid Donors Conference, the Commission has begun delivering on its pledge to mobilise the EU budget to help improve living conditions for the Iraqi people". "We look forward to doing much more in the future, and particularly when security conditions allow", he added.
Furthermore, as far as the compatibility of the attribution of contracts with WTO rules is concerned, Washington considers that "purchases on behalf of the Coalition Provisional Authority (CPS) are not covered by international trade procurement obligations because the CPAZ is not an entity subject to these obligations". Accordingly, there is no need to invoke the 'essential security' exception to trade obligations, it is explained at the office of the US Trade Representative (USTR).