The European Union (EU) has allocated an amount of Euro 53 million, an equivalent of Rs 2.1 billion, to Mauritius as a grant to support the country´s overall economic reform programme.

The grant money has been disbursed as direct general budget support giving the Government of Mauritius the maximum level of flexibility to allocate the financial resources within the framework of the budget voted by the National Assembly.

It forms part of the general budget support programme of the Promoting Sustainable and Equitable Development (PSED) with a total amount of Euro 169.153 million funded from the 2009, 2010 and 2011 allocations from the EU Accompanying Measures for Sugar Protocol Countries (Euro 122.06 million) and the 10th European Development Fund (Euro 47.09 million).

Successful economic reforms

Mauritius has been granted the allocation in recognition of the progress achieved in its economic reforms by diversifying the economy and reducing poverty, in spite of the difficult economic environment prevailing on the world economy. The country has also been able to meet all the objectives with respect to a conducive macro-economic environment; reforms in the public finance management; rise in the competitiveness of the economy in particular the restructuring of the sugar sector into a sugar cane cluster; energy; enhancing economic opportunities for socially vulnerable people; improving access to pre-primary education for children as well as protecting the environment.

In a statement, Alessandro Mariani, Ambassador and Head of the Delegation of the European Union to Mauritius, stressed that while Mauritius has made good progress up to now, additional efforts are still required to consolidate and further improve the country´s competitiveness and its integration in the world economy. He added that reforms in the energy and water sectors, reforms in parastatal companies, continued modernization of the sugar sector and environmental issues should be given more consideration for Mauritius to sustain and further accelerate its good development path.

It will be recalled that the PSED programme launched in June 2006, has been designed to support the ten-year economic reform programme of the Government. It also contributes to increasing the competitiveness of the sugar cluster with emphasis on energy, enhancing economic opportunities for socially vulnerable people, improving access to pre-primary education for children and the protection of the environment.