H.M. TREASURY NEWS RELEASE

HM Treasury News Release

120/99

16 July 1999

HEWITT WELCOMES EU AID PLANS FOR KOSOVO

The reconstruction effort for Kosovo was given a massive boost today by EU Finance Ministers, including UK Economic Secretary to the Treasury, Patricia Hewitt, at a meeting in Brussels today.

The Budget Council agreed to set aside 500 million euros in the draft 2000 EU budget from which the EU's contribution to the reconstruction effort can be funded.

Welcoming the decisions, Patricia Hewitt said:

"We strongly support the important decision made today to set aside 500 million euros in order to finance measures that will help rebuild Kosovo.

"The international community rightly expects the EU to play an important role in the rebuilding process, and today we have taken a major step forward in ensuring this is possible.

"However, the prioritisation of Kosovo within the EU budget does not mean that the EU is reducing its commitment to other regions. We have long argued that the EU can and should use its existing resources more effectively. That's why I particularly welcome today's decision to set aside funding for Kosovo from within the EU's budget ceilings."

The draft budget will now be forwarded to the European Parliament for its first reading.