EU Affirms Commitment to Support Ethiopia’s Economic Reform, Green Transition

Addis Ababa: The European Union has expressed its commitment to support Ethiopia's economic reform, green transition, and international gateway strategy.Planning and Development Minister Fitsum Assefa held discussion with EU International Partnership (INTPA) Director for Sustainable Finance Antti Karhunen, who is in Addis Ababa for the 4th International Finance for Development (FfD) Preparatory Committee meeting today.The director, on behalf of the EU, has expressed her sorrow over the recent loss of life in the landslide that occurred in Gofa Zone, according to Ministry of Planning and Development.The European Union is ready to offer financial assistance and has been coordinating with the committee established by the Federal Disaster Management Commission, she said.The planning and development minister appreciated the swift response of the European Union for the crisis, and underscored the importance of a long-term climate adaptation strategy in conjunction with immediate humanitarian aid.Ethiopia' s efforts to strengthen ties with the European Union was also discussed.With respect to human rights abuse, she stated that the legal framework for the transitional justice is nearing completion, and the establishment of the National Dialogue Commission is crucial in achieving enduring peace in the country.Fitsum also outlined Ethiopia's domestic economic reforms and the country's progress in enhancing competitiveness and investment climate.The minister added that the COVID pandemic and climate-induced challenges in eastern and southeastern Ethiopia have impeded progress on some reforms.During the discussion, Antti Karhunen reaffirmed EU's commitment to supporting Ethiopia's economic reform, green transition, and international gateway strategy.She mentioned that the European Union is contributing 650 million euros to Ethiopia through the Multilateral Annual Indicator Program (MIP) as part of the overall support.For her part, the minister pointed out the importance of Ethiopia taking part in the pl anning and execution of the MIP to guarantee its congruence with the country's developmental goals.She also called for the reinstatement of EU budget support, which is a critical component of Ethiopia's economic reform strategy.In addition, the minister raised concerns regarding the implications of the new EU Deforestation-Free Regulation (EUDR).According to her, rushed implementation of the EUDR could negatively impact millions of Ethiopian coffee producers.Fitsum emphasized that the regulation should be fully compatible with the established transitional principles outlined in international climate accords.As Ethiopia is committed to meeting the requirements of the regulation, the minister requested additional time for implementation.Source: Ethiopian News Agency