EU signs €18m aid deal with East Timor

THE European Union signed a €18 million aid deal with East Timor’s government yesterday, pledging to support democracy and economic development in the nation which has been torn by violence in recent weeks.

EU Commission President Jose Manuel Barroso said the agreement showed the EU’s “full support and solidarity” with East Timor.

Prime Minister Mari Alkatiri witnessed the signing ceremony. The money will be used over the next two years, with two-thirds allocated to rural development projects and the rest to bolster the country’s fragile state institutions.