EC GREENLIGHTS 122 MILLION EURO AID PACKAGE

C O N F I D E N T I A L ASMARA 000113 SIPDIS DEPT FOR AF/E LONDON AND PARIS FOR AFRICA WATCHERS E.O. 12958: DECL: 04/07/2019 TAGS: EAID EFIN PREL PGOV ER SUBJECT: EC GREENLIGHTS 122 MILLION EURO AID PACKAGE Classified By: Ambassador Ronald K. McMullen for reason 1.4(d). ¶1. (C) SUMMARY: European Commission (EC) member countries have officially signed off on a 122 million euro aid package for Eritrea, according to an EC representative. The decision now goes to the EC president for final approval, which the representative believes will happen. The EC funds will go towards food security, infrastructure, and governance. Although Eritrean diaspora community sharply criticized the aid package, the EC ultimately decided to approve the funds citing a desire to maintain dialogue with the Eritrean government (GSE). End Summary. ¶2. (C) The decision to move forward with the aid agreement concludes a two-year internal debate on whether or not to continue EC development funding for Eritrea. The EC previously provided a 117 million euro assistance program through its Economic Development Fund (EDF),though the GSE's lack of capacity delayed its implementation. The new aid package is to be distributed over a five-year period and will be split three ways: - 70 million euros for food security - 32 million euros for infrastructure - 18 million euros for governance (mostly focusing on the justice sector, with 1 million euros going to the National Confederation of Eritrean Workers and other funds for historical preservation). ¶3. (C) Despite criticism from the diaspora, the EC decided that the aid package was the best option available to maintain dialogue with the GSE. Regular talks between GSE officials and the EC ambassadors resumed as of mid-2008. The topics last year included regional issues and migration, while the first 2009 meeting focused on human rights. The EC representative admitted the GSE had not requested EC funding and if EC were to condition the funds in any way, such as on improving human rights, the GSE would refuse the assistance without hesitation. ¶4. (C) The representative claimed the EC is not turning over the funding directly to the GSE, but in fact it is forming partnerships with GSE entities such as the women's and youth unions and local governments. ¶5. (C) COMMENT: The diaspora outcry against the EC assistance package is an encouraging sign the GSE's grip on its overseas citizens is weakening. Although the funding is being channeled to grassroots organizations, in fact the GSE will control every penny and the EC will reap a minimal amount of influence. MCMULLEN