EU offers extra aid to reforming countries

The European Union is to offer extra aid to poor African, Caribbean and Pacific (ACP) countries who can show they are using the…

The European Union is to offer extra aid to poor African, Caribbean and Pacific (ACP) countries who can show they are using the money effectively.

The move is part of efforts by the EU, the world's largest aid donor, to promote democratic reforms and better governance in the countries which receive its help.

Incentives on offer will total €3 billion for the 2008-13 period, it said.

"There won't be a list of good and bad guys. We are not trying to humiliate our partners," EU Aid and Development Commissioner Louis Michel told a news conference on Wednesday.

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"We will make available additional resources to those ACP countries with very good governance or who are prepared to carry out reforms."

The bloc will draw up its own criteria after consultations with the countries involved, he said.

The so-called "incentive envelope" will be part of total EU aid for 2008-13 of €22.6 billion to the region, which includes some of the poorest countries in the world.

Mr Michel and EU External Relations Commissioner Benita Ferrero-Waldner also launched proposals calling on the EU's individual member states to harmonise national efforts to push for better governance in aid-receiving countries.