An evolving EU- Syrian financial co-operation
Syria-European Union, Economics, 3/23/2001

The European Union and Syria have been linked since 1978 by a Cooperation Agreement and are currently negotiating an Association Agreement in the framework of the Euro- Mediterranean. The EU partnership was set up in 1995 at the Barcelona conference.

Projects under implementation between the two sides are at a cost of 134.5 million EURO. They include the Lower Euphrates Drainage and Irrigation projects of 15.4 million EURO; Electricity Sector Support program I of 11.0 million EURO; Hama and Bseira Water Supply I& II at 9.6 million EURO; Business Sector Support program I, at 9.0 million EURO; Higher Institute for Applied Sciences and technology of 8.0 million EURO; Banking Sector Support program at 4.5 million EURO; Demographic Sector Program at 2.0 million EURO; Environmental projects ( Life ) at 1.0 million EURO and Humanitarian projects ( ECHO) at one million EURO.

During the recent visit made by the EU President Romani Prodi to Syria, four new financing agreements worth 38 million EURO were signed on 10th February, to support the electricity and telecommunications sectors, develop cultural tourism and establish a business school in Syria.

However, the objective of the " Power Sector Support program( 11 million EURO) is the modernization of the Syrian electrical power sector, through improving the management and adapting the institutional structure to market economy principles.

The "Higher Institute of Business Administration" ( 14 million EURO) is designed to support the Syrian government's efforts in promoting higher education and improve the education system in specialized business training.

The "Telecommunication Sector Support Program" of 10 million EURO will help modernize the telecommunications sector in terms of management, manpower training and institutional capacity building.

The "Cultural Tourism Development Program" ( 3 million EURO) aims to assist Syria in fully exploiting her touristic potential.

Moreover, the grants come from the Meda program and are part of the EU support to economic modernization in the country. They bring the number of agreements signed since June 2000 to seven, worth a total of 73 million EURO. In addition, the European Investment Bank has signed two loan agreements in December 2000 and January 2001, worth a total of 190 million EURO.

On the economic side of cooperation between Syria and the EU, the Union is Syria's first trading partner as it absorbs 55% of her exports and sells 30% of her imports.

Discussions on the broad orientations of EU- Syria cooperation in the years 2000- 2006 have begun in June 1999. Continued support to economic reform and more generally to the modernization of the economy forms the main axis of these orientations.

Grants from the EU Budget are complemented by loans from the European Investment Bank, generally aimed at large economic infrastructures: electricity, sewage.

The European Union supports the Syrian authorities's declared objective of economic modernization and put at their disposal Europe's very rich experience in this field, in the full respect of the country's sovereignty. In its relationship with the Syrian authorities and with the business circles, the Union stresses that modernization of economic policies, structural reforms and more dynamic private investment, being domestic or foreign, are the essential ingredients of a stronger Syrian economy.

Since 1997, the European Union has been supporting a program of modernization of the central bank of Syria, an essential step towards a higher degree of efficiency of the entire banking system.

The main goal of the program are to develop and implement action plans geared at the reorganization of the central bank and the installation of modern and efficient computer systems.

The EU support takes the form, in particular, of a resident technical assistance during three years, the provision of an entire computer and telecommunications system, a connection to the world- wide SWIFT system and of training activities.

Another aspect of closer ties between the two sides is manifested in the establishment of the Syrian- European Business Center in 1996 as part of the EU support to reinforcing Syria's business sector. The center has become a focal institution for businessmen and women looking for a better performance.

Manned by European and Syrian experts, the SEBC provides a host of services to businesses some free, some against a fee: The centers conducted specialized short Ðterm training from executive secretariat to export manager. Some 600 Syrians have already gone through these training sessions. It has been also providing access to European Businesses through the extensive electronic networks now operating in the EU, such as the 700 "Euro Info Centers."

The center which has been also organizing business meetings in Syria such as the "Euro-Syrian contact Days" has enjoyed the full support of the Syrian business community as well as the constant backing of the Syrian Government.

Previous Stories:
  Syrian cotton fabrics and the EU   (3/13/2001)
  European Investment Bank second visit to Syria   (2/1/2001)
  Al-Assad receives the EIB delegation   (12/15/2000)

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