Parker Homework 1- Country Specific Sanctions
EU suspends development aid to Madagascar
03 June 2010, 15:28 CET
— filed under:
Council of Ministers
The council of Justice and Home Affairs writes,
The European Union on Thursday sanctioned Madagascar on Thursday over
the "unacceptable" actions of its "de facto authorities" who seized power last year, by slashing
funds. Interior ministers meeting in Luxembourg formally endorsed the move to suspend all
budgetary aid to Madagascar as well as development funds.
The EU move came three days after Andry Rajoelina,
who grabbed power in an army-backed coup in March 2009, appointed generals as head of the armed forces and police, with military men also
taking the health, fishing and environment ministries.
Prime Minister Camille Vital, a retired general, remains at the top of the government.
Rajoelina had announced plans to reshuffle the government after the failure of the latest round of internationally backed talks at ending the
country's political crisis at the beginning of the month
EU humanitarian aid, and other operations already under
way will continue except for activities and payments directly involving the government and its
"The EU considers the forcible transfer of power in Madagascar on 17 March 2009 a serious violation of democracy and the rule of
law," the 27 member states agreed. Since then there has been no consensus on the implementation of political agreements signed by the country's
factions last year."Instead, the de facto authorities have unilaterally announced a roadmap for transition," which the EU considers "unacceptable"
hence the need for "appropriate measures," the European Union statement continued.Rajoelina has announced a political transition plan
culminating in a presidential election in November in which he said he would not run.
The AU sanctions have totally isolated the current Malagasy regime.
in the process of becoming
International donors have
cut their aid. And, starting with Africa, the regime's assets abroad will be frozen.
The AU sanctions are the first to hit the ruling class directly, and are expected to be followed up
by other nations, in particular Europe and the US.
Other sanctions have hit the aid and trade dependent Malagasy economy strongly. Budgets
have been drastically reduced due to development aid cuts, and especially the education
sector is suffering. Trade has been dramatically reduced as access to US markets is now
hindered by customs barriers. The EU is to follow.
As a result,
unemployment rates have already risen strongly and poverty is again on the
rise. An estimated 230,000 jobs have been lost. World Bank figures released on 1 February
showed that last year economic growth in Madagascar collapsed to just 0.6 percent
compared with 7 percent in 2008. A zero growth is expected this year.