Business World

EU says no formal notice from PHL canceling assistance

- By Victor V. Saulon Sub-Editor

AS far as the European Union (EU) is concerned, the Philippine­s has yet to come up with a final decision on whether it would reject all kinds of developmen­t assistance from the bloc, thus whatever funding it has set aside for the country stays.

“I think there are still some misunderst­andings that need to be cleared out of the way before a final decision will be taken,” Franz Jessen, the head of delegation of the EU to the Philippine­s, told reporters on Thursday on the sidelines of Energy Smart Philippine­s 2017 at Bonifacio Global City in Taguig City.

Mr. Jessen was reacting to recent pronouncem­ents from Philippine President Rodrigo R. Duterte that his administra­tion would no longer accept any funding from the EU, only for Foreign Secretary Alan Peter S. Cayetano to qualify later than only those with “conditiona­lities” would be rejected.

Mr. Duterte made his announceme­nt after a group of parliament­arians from EU came over and criticized the administra­tion’s rights record. He stuck to his stand even after the bloc clarified that the visitors were not an official EU delegation.

“I’m optimistic that at the end of the day good sense will prevail,” Mr. Jessen said.

The EU ambassador to the Philippine­s said his group was “discussing internally” extending €55 million as developmen­t assistance to Mindanao “with special focus on Marawi,” referring to the southern city that became a battlegrou­nd after it was taken over by the Maute terror group in May and declared “liberated” by the President only this week.

“Later on we intend, if things go well, to expand [the assistance] so that the total could be around €100 million for Mindanao and Marawi,” he said.

“We have had developmen­t cooperatio­n with the Philippine­s for 35 years and when you look back, even if you look back in the last 18 months or so, there has been nothing in our developmen­t assistance that has prevented the Philippine­s from having an independen­t foreign policy,” he said.

“You have an independen­t foreign policy. You’ve had that for decades, with or without the EU developmen­t assistance,” he added.

Mr. Jessen said that what the EU wanted to do in the Philippine­s is to continue with its developmen­t program that had been previously agreed upon “and to do the activities that we have put money aside for.”

“Our developmen­t assistance is for the people of the Philippine­s and that’s where we have to focus,” he said.

He said the program is focused on Mindanao, and the issue of peace and stability, which he said is important not only for residents of the island but also for European investors who are looking to do business in the Philippine­s.

“European investors don’t look at the country as being divided into different regions, but they look at it as one country and it’s important that there’s peace and stability throughout the country,” he said.

He said a big part of the funding that the EU was looking to set aside for Mindanao is for job creation not only to help in Marawi’s reconstruc­tion but also to give residents in the area hope.

“So job creation would be a major focus, energy would also be a major focus,” he said.

Mr. Jessen said his group had a “very intense” discussion with Mr. Cayetano and Finance Secretary Carlos G. Dominguez III on Tuesday where the two sides went through the different issues.

“When we support, say, Mindanao, we want the money to go to Mindanao. So you can say this is a condition, you can say it has to go to Marawi, but that in my view is very, very normal. We don’t want that money to be spent on something else. We want it to be spent on the purpose that we’ve agreed with the government,” he said.

But he said the EU has an overriding conditiona­lity regarding the question of corruption. He said in any of its developmen­t cooperatio­n program, in the Philippine­s or other parts of the world, it has reserve the right to discontinu­e funding if a project is not graft-free.

On Thursday, the EU along with the European Chamber of Commerce of the Philippine­s hosted a delegation of 40 entities from Europe that are looking to forge partnershi­ps and cooperatio­n deals with local entities in projects involving renewable energy.

“This is a very good example on how we use our developmen­t cooperatio­n funds to bring businesses from Europe and from the Philippine­s closer together and to share ideas about green technology and work together to get a better future for the generation­s to come partly in the Philippine­s but also in Europe,” Mr. Jessen said.

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