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European Commission

Press release

Brussels, 21 July, 2014

EU Commissioner announces significant new funding for Peru during visit

The EU's development contribution to Peru for the period 2014-2017 (€66 million), as well as new funding to support the fight against illegal drugs (€32 million), will be announced today by EU's Commissioner for Development, Andris Piebalgs, during a visit to the country to discuss future cooperation with high level authorities.

Commissioner Piebalgs said: “Our relationship with Peru has gone from strength to strength. The country has made impressive progress, both economically and socially, and I hope that today's announcement sends a clear signal that we stand as a committed partner to Peru, as it continues on its journey to growth."

The Commissioner will also visit a number of EU projects, including one aimed to combating chronic child malnutrition, and to providing better access to health and social services.

Supporting the fight against drugs

The anti-drug programme, which runs until 2017, will support the Government of Peru in the implementation of its National Strategy to Fight against Drugs, and is the most significant support to the country so far on this sector. A first payment of €8 million, out of the total €32 million, will be signed by the Commissioner during his visit.

"I’m particularly pleased to announce this new support", added the Commissioner. "We believe that the fight against drugs is a shared priority and a shared responsibility; something that should be combated from both sides. Peru’s fight is our fight and one that together, we can win."

The programme's objective is to help reduce the illegal production, trafficking, and consumption of drugs in Peru and at the same time foster alternative development, based on legal economic activities. EU Member States will for the first time actively participate in the programme, working hand in hand with Peru and exchanging experience and expertise.

Concrete actions carried out by the programme include:

  • provide treatment for drug users,

  • rehabilitation measures to help get users back into society,

  • prevention measures, to raise awareness of the dangers of using drugs in the first

    place.

As a result, the EU support is also expected to help reduce the volume of cocaine entering the EU.

EU-Peru bilateral support

New bilateral support of €66 million for Peru between 2014 and 2017 will aim to foster local development in the regions with the biggest development gaps, focusing on areas that can help the country reach a more inclusive growth, such as sustainable trade. In this sense, the funding will support the implementation of the free trade agreement between Peru, Colombia and the EU, which was signed in June 2012 (and provisionally applicable in Peru since March 2013).

Peru has made significant progress in recent years in terms of poverty reduction and economic growth and as such, EU bilateral funding will enter a new phase. This evolution is in line with the principles set out in the Agenda for Change (the EU’s policy blueprint to refocus its aid to prioritise those countries and sectors which need it most and where it can make the biggest difference). However, with a view to consolidating previous results it was decided that Peru would continue to benefit from EU bilateral aid between 2014 and 2017. Even after bilateral funding is phased out, Peru will be able to continue to benefit from EU funding under regional and thematic instruments.

Background

During the Commissioner’s visit to Peru, he will visit a number of EU projects in the region of Ayacucho, including the Peruvian Malnutrition Programme, or EURO-PAN programme. The EURO-PAN programme is one of the biggest (€60.8 million) EU budget support's flagships in Latin America, implemented between 2009 and 2013. It was set up to reduce poverty and improve social cohesion in the most vulnerable Andean regions by combating the prevalence of chronic child malnutrition, by helping to provide better access to health and social services; for example through support to health institutions such as the Ministry of Health, the National Identification Register and the Health Insurance System.

The programme has achieved impressive results: the prevalence of child malnutrition among children less than five years old dropped from 23.2% in 2010 to 18.1% in 2012 at national level and from 60.1% to 40.8%) in the 54 poorest districts of three targeted regions (Apurimac, Ayacucho and Huancavelica).

The Support to the National Strategy to Fight against Drug Programme involves taking a sustainable and manageable approach to reducing the production, trafficking and consumption of illicit drugs, while at the same time encouraging alternative development based on legal economic activities. It is a budget support programme (meaning that EU funding goes directly to the national budget of the recipient country) and will be implemented through direct centralised management. The EU support is targeted where EU resources and expertise are most needed and where it can have the greatest impact for both Peru and the EU.

For more information:

MEMO/14/493 : EU cooperation with Latin America

Website of the European Commissioner for Development, Andris Piebalgs:

http://ec.europa.eu/commission_2010-2014/piebalgs/index_en.htm

Website of EuropeAid Development and Cooperation DG:

http://ec.europa.eu/europeaid/index_en.htm

Contacts :

Alexandre Polack (+32 2 299 06 77)

Maria Sanchez Aponte (+32 2 298 10 35)

For the public: Europe Direct by phone 00 800 6 7 8 9 10 11 or by e­mail


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