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Home / World

EU cancels aid after Fiji fails to honour deal

2 Oct, 2007 04:00 PM2 mins to read

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Fiji's military are not moving towards organising an election quickly enough for the EU's liking. Photo/ Reuters

Fiji's military are not moving towards organising an election quickly enough for the EU's liking. Photo/ Reuters

KEY POINTS:

Europe has stepped up its response to the suspension of democracy in Fiji, cancelling an aid allocation for this year and putting on hold more than $112 million worth of future aid.

In separate statements yesterday, the European Union said it was willing to continue to work with
Fiji - whose government was overthrown by a military coup in December - but because some commitments Fiji made in April had not been carried out, measures would be taken. It said aid being allocated to Fiji to restructure the country's sugar industry had been scrapped for 2007 and about €60 million ($113 million) of future aid had been put on hold.

"The sugar allocation for 2008 and 2009 will be released as and when Fiji meets certain agreed commitments leading to elections and installation of a legitimate government," the statement said.

It also said money from a development fund would be provided to Fiji only if the country respected commitments made with regards to human rights and the rule of law.

"If there is a slowing down, breakdown or reversal in the implementation by the interim government of the commitments it has made, the EU reserves the right to adjust the appropriate measures."

In April, representatives of Fiji's interim government made a deal with the EU to guarantee an aid package.

Under that deal, F$400 million ($342 million) in aid payments were made conditional on Fiji moving towards democracy, including ending the state of emergency imposed after the December coup.

Fiji lifted martial law on May 31 but re-imposed the public emergency regulations on September 6, saying they would be in force for only 30 days.

Fiji authorities also agreed to hold elections before February 28, 2009, but military leader Frank Bainimarama has reportedly since said the country will not hold an election for the sake of it.

In April, Fiji also gave the EU commitments with respect to the rule of law, human rights and "fundamental freedoms" but has since launched a crackdown on people posting or reading internet weblogs.

The EU said the full range of measures would be explained to Fiji authorities before being made public. Sugar is an important part of Fiji's economy, constituting 5-6 per cent of its GDP, employing 12 per cent of its workforce and accounting for 20 per cent of its exports.

AAP

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