Sun.Star Cebu

PALACE TURNS DOWN NEW GRANT FROM EU

Finance chief assures projects financed by existing EU grants will still proceed

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Malacañang on Thursday said President Rodrigo Duterte approved the decision not to accept grants from the European Union (EU) but clarified that the policy pertains only to new grants that imposes conditions affecting Philippine autonomy.

Existing grants from EU will continue.

“The President has approved the recommenda­tion of the Department of Finance (DOF) not to accept grants -- and this is not necessaril­y humanitari­an aid -from the EU that may allow it to interfere with the internal policies of the Philippine­s,” Presidenti­al Spokespers­on Ernesto Abella said during a Palace briefing.

He said the move was precipitat­ed by a grant proposal from EU that carries a provision that is unacceptab­le to the government.

This was confirmed by Finance Secretary Carlos Dominguez.

“We did not cancel any existing EU grants. PRRD approved the recommenda­tion not to accept the EU’s offer of a grant of about USD 280 million which would involve review of our adherence to the rule of law. That specific grant, that is considered interferen­ce in our internal affairs,” Dominguez said in a statement sent to media.

The EU delegation in Manila said the Philippine government informed it about its decision Wednesday, but it has yet to receive a written notice.

EU Ambassador Franz Jessen said more than 250 million euros ($278.7 million) worth of grants was at stake.

“We are still awaiting more detailed clarificat­ion from the government,” Jessen said in an email to the AP. “The amount possibly concerned by the new decision is 250 million euro plus. For this year the amount affected could be 100 million euro.”

On its website, the European Commission (EC) said the EU’s support to the Philippine­s focuses on the health sector, governance and on assistance to vulnerable population­s, specifical­ly in Mind- anao which has been affected by population displaceme­nt.

Projects

Developmen­t projects currently using EU assistance include a 35 million euro ($39 million) grant to support the peace process with Muslim rebels in the southern Philippine­s.

The EU is also the largest foreign investor in the Philippine­s, the only member of the 10-nation Associatio­n of Southeast Asian Nations to enjoy duty-free exports under EU’s Generalize­d Scheme of Preference­s + or GSP+ incentives for developing countries.

The Philippine’s duty-free exports to EU was worth around 1.6 billion euros ($1.78 million) in 2016, according to EU delegation data.

In March, the EU summoned a Philippine envoy to explain an expletive-laden tirade by Duterte, who threatened to hang EU officials for opposing his efforts to re-impose the death penalty.

The EU’s external action service, the equivalent of a foreign office, said it hauled Charge d’Affaires Alan Deniega to its Brussels headquarte­rs to provide “an explanatio­n for the recent, unacceptab­le comments of President Duterte.”

The move highlights growing European exasperati­on with the president.

Duterte has lashed out at the EU repeatedly for raising human rights concerns over his deadly crackdown on illegal drugs.

Meanwhile, Abella raised the possibilit­y that the policy would not be limited to the EU alone as the Philippine­s has the preroga- tive to accept or decline any foreign aid or loan.

“The Philippine­s reserves the right to accept loans and grants that help attain its objectives of promoting economic developmen­t inclusiven­ess and reducing poverty, attaining peace within its borders and with its neighbors, and fostering a law-abiding society,” he said.

“It also reserves the right to respectful­ly decline offers that do not achieve these goals and offers that allow foreigners to interfere with the conduct of its internal affairs,” Abella said.

 ?? SUNSTAR FOTO/KING RODRIGUEZ ?? EU-FUNDED PROGRAM. A young Tiruray, a tribal group in a war-torn community in Maguindana­o, holds a sign about the Mindanao Trust Fund, one of the programs funded partly by the European Union. It aims to assist the socio-economic recovery of conflict-affected communitie­s in Mindanao.
SUNSTAR FOTO/KING RODRIGUEZ EU-FUNDED PROGRAM. A young Tiruray, a tribal group in a war-torn community in Maguindana­o, holds a sign about the Mindanao Trust Fund, one of the programs funded partly by the European Union. It aims to assist the socio-economic recovery of conflict-affected communitie­s in Mindanao.

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