§ Mr. CousinsTo ask the Secretary of State for Foreign and Commonwealth Affairs what assistance the European Union has offered, including balance of payments assistance, to countries without a structural adjustment programme agreed with the International Monetary Fund and what position the United Kingdom Government have taken in the Council on Ministers of these issues.
§ Mr. GoodladEuropean Union assistance for structural adjustment is normally in support of adjustment programmes agreed with the International Monetary Fund. Since January 1992 the only exceptions have been:
- (i) A sectoral import programme for Ethiopia for 27 mecu agreed in April 1992 while discussions with the International Monetary Fund were still under way. The United Kingdom voted in favour.
- (ii) A structural adjustment support programme for 5.5 mecu to the Ivory Coast in February 1992. The United Kingdom opposed the project on the grounds that the international financial institutions had suspended their assistance. The decision was adopted by qualified majority.
- (iii) A proposal for 70 mecu "Community support for structural adjustment" was agreed for Algeria in April 1993 in the absence of an agreed International Monetary Fund programme. The United Kingdom voted in favour of the proposal on the ground that it was considered that Algeria had embarked on a serious programme of economic reforms.
- (iv) A further 30 mecu "Agriculture sector import programme" for Algeria was approved in October 1993 on condition that the Algerian Government would, before the end of 1993, take the necessary steps to agree a programme with the International Monetary Fund. The United Kingdom supported, but requested that Algeria's progress with the International Monetary Fund be kept under review and agreement reached before funds were disbursed.