On economic relations between Ethiopia, Eritrea

Analysts and diplomats said economic differences played an important role in setting ablaze the war between Ethiopia and Eritrea, adding these differences will be persisting even if a peace settlement will be reached between the two countries.

The lecturer at Addis Ababa university Birhani Nija said that the border issue is a pretext for more dangerous issues, adding these are economic problems and mainly commercial ties.

He continued that Eritrea's issuance of a special currency for itself in November 1997 and the decision by the Ethiopian president to insist that bilateral commercial relations are to be in hard currency, was behind the escalation of tension and its change into military operations.

News reports said that even with the signing of a peace agreement rebuilding confidence between the two poor countries, situated in the African horn will be almost impossible after two years of fighting and thousands of killing.