European Commission approves donation of 9 million euros to Cape Verde

17 November 2010

Praia, Cape Verde, 17 Nov – The European Commission (EC) has approved the donation of a donation of 9 million euros to Cape Verde under the terms of the “Flex Vulnerability” scheme, said the head of the European Union delegation in Cape Verde.

According to Josep Coll, the funding provides important support for the government’s fiscal execution and macroeconomic policies to reduce the impact of the crisis and aims to balance the country’s accounts.

“Cape Verde is structurally weak due to its geographical position, its small size and an economy that is heavily dependent on the tourism sector. Cape Verde saw a significant decline in its revenues in 2009, related to the impact of the international crisis on tourism revenues and foreign direct investment,” he said.

Faced with this situation, the EU has adopted a system of aid not only to Cape Verde but also to other countries that have felt the real negative impact of the international crisis.

“This was the case with Cape Verde which made a request to the European Union that this year has been granted,” said Coll.

The “Flex Vulnerability” scheme is a European Union rapid response system set up in 2009 to help countries that were most affected by the economic crisis, with a budget of 500 million euros over two years (2009-2010). (macauhub)