Madagascar: EU holds back $600m aid

The European Union has held back a 600 million euros development aid to Madagascar for failing to adhere to democratic tenets. The bloc, which is the island’s major donor, is due to extend the suspension for another 12 months, according to a draft statement. A March 2009 coup has caused the African nation.

According to Reuters, the statement due to be approved by EU ministers on Monday calls a unilateral transition plan drawn up by the de facto authorities led by President Andry Rajoelina “unacceptable”.

The draft, obtained by Reuters, said budgetary and development aid would be suspended for 12 more months.

“The measures do not affect humanitarian and emergency aid and certain projects that directly affect the population,” the draft statement said.

“Operations already under way will continue except for activities and payments directly involving the government and its agencies,” it added.

The statement said dialogue with Madagascar would continue and be stepped up “if a consensus-based solution for a return to constitutional order is reached”.

Last month Rajoelina named 10 new ministers, including five military officials, in a cabinet reshuffle which the opposition said fell way short of creating a neutral government.

Foreign donors and international mediators have for months urged Madagascar’s political rivals to form a consensus government tasked with holding new elections.

After negotiations collapsed in April in South Africa, Rajoelina vowed to forge ahead with a new interim government that would oversee a referendum on constitutional reform and a presidential vote in November.

Source: Africa News

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