European Union approves large National Financing Plan for Syria
Syria-European Union, Economics, 4/26/2004

The European Union is providing 53 million Euros to support co-operation actions in Syria, presented in the National Financing Plan for 2004. Four programs are planned focusing on the country's needs for institution building in the financial sector and Syria's municipalities development as well as for vocational education and training reform. In addition, the Tempus program continues, bringing the overall amount of EU assistance to Syria in 2004 to 55 million.

The European Union Meda program provides financial support for the objectives of the Barcelona Process. Taking into account the priority areas identified for the individual countries, the Meda program concentrates on a limited number of key objectives, supporting the development of pluralistic democratic societies based on the respect of human rights and rule of law, economic and social reforms linked to the implementation of the Association Agreement. The negotiations for the EU Syria Association Agreement were successfully concluded in December 2003. The Agreement is waiting for approval by the respective authorities of the two parties.

The National Financing Plan for 2004 is fully in line with this context and will support the reforms in Syria through institutional building and human resource development.

The Modernisation of the Ministry of Finance (MMoF) project (8 M ) will provide support to upgrade and harmonise the institutional framework in the field of taxation and public finance, including customs tariffs and regulations. It will comprise policy advice, training and equipment for reform of the taxation system, including the introduction of the VAT, and for the modernisation of state budgeting. The general directorate of customs will benefit from similar types of support for the implementation of new customs procedures. The Banking Sector Support Project II (BSSP) (6M ) will support the recently launched modernisation process of the banking sector by improving the skills and competencies of staff and management. It will offer technical capacity building and policy suggestions as well as formal training. The new Bank Training and Rehabilitation Centre will be supported in the establishment of its administrative and physical structures. The Municipal Administration Modernisation (MAM) (18 M ) will support Syrian cities to improve the efficiency of their administration and financial management, improve their environmental practices, deliver better services, create a conducive environment for job creation and better plan their urban growth. At central Government level, the project will help to improve the management practices of the concerned ministries and assist in the devolution process by recommending modifications to the law on local administration.

The specific objective of the Vocational Education and Training program (VET) (21 M ) is to improve the responsiveness of Vocational Education and Training and Labour market systems to both enterprises and individual skills needs in selected economic branches which are textile and maintenance. The program will have three outputs: (i) Modernisation and upgrading of VET in the two selected pilot economic sectors through the establishment of a demand driven approach for formulation and provision of vocational education and training services to the productive sector, (ii) Development of systemic reform strategy building on the outcomes of the pilot activities, (iii) Modernisation of labour market organisations in order to improve conditions for VET graduates to find employment.

The national allocation for the Tempus Programme (2 M ) for 2004 is in addition to the plan.

The approval of the National Financing Plan brings to 204 million the project portfolio of EU funded projects managed by the Delegation of the European Commission to Syria. These projects consist mainly of technical assistance and supplies and assist the Syrian Authorities in implementing economic, social and administrative reforms, establishing a market economy and preparing the country's participation in the Euro Mediterranean free trade zone. In addition, The European Investment Bank provides financial assistance amounting to 380 million in loans to support Syria's infrastructure and enterprises.

Previous Stories:
  Syria, EU transport co-operation highlighted   (12/11/2003)
  New round of Syria- EU negotiations   (12/9/2003)
  European Union - Syria Cooperation projects Day   (12/4/2003)

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