The European Commission pledged an extra €200 million for post-war reconstruction in Iraq two days ahead of elections to choose an interim government.
The offer is a major increase of existing EU aid to the country and is part of European efforts to show it is ready to help in Iraq ahead of a February 22nd summit with President George W Bush aimed at restoring better transatlantic relations.
"Our proposal means that we will be significant partners for the new Iraqi administration," EU External Affairs Commissioner Benita Ferrero-Waldner said in a statement.
"2005 will be a critical year for Iraq and we remain committed to reconstructing the country under the newly-elected transitional government," she added.
Some €130 million will be channelled into essential services and jobs; €15 million for technical assistance in energy and trade; €10 million for supporting the political process; €45 million for a reserve fund at the disposal of the new government.
The EU announced a relatively modest €16.5 million package in November to support Sunday's elections and is expected to offer next month to train senior Iraqi police officers and magistrates in EU capitals.