By IPS Correspondents
BRUSSELS, Jun 10 2004 (IPS)

A European Union blueprint for assistance in Iraq comes at a – make or break" point in the country’s reconstruction process, says Chris Patten, the bloc’s commissioner for external relations.

The European Union (EU) signaled Wednesday (June 9) that it would offer a broad range of financial and other assistance through a – progressive engagement" policy that aims to further democracy and stability in the war-torn country.

The EU says it will focus on securing democracy and a market economy and in helping Iraq’s ôeconomic and political integration into its region" and the global economy.

Setting out a new medium-term framework for the development of EU relations with Iraq, which includes the first-ever EU diplomatic representation in Baghdad, Patten insisted that restoring security would be key to all international attempts in the reconstruction process.

ôThe security climate and progress in the political transition will determine the extent to which the ideas contained in today’s communication can be taken forward," he told media representatives Wednesday.

ôThe next few months are likely to be make-or-break for Iraq’s transition," he added, urging the United States and other countries to do all they can to ôbuild up the authority and credibility of the interim government."

The Commission says the first and most immediate stage of the programme should include support for the rule of law and civil administration, and consultation on debt forgiveness.

The EU says it will continue to implement an ongoing 367 million dollar package of humanitarian and reconstruction assistance.

ôI would very much hope that a stable and democratic Iraq would be able in the first place to negotiate a trade and cooperation agreement with us as well," Patten said.

After national elections in Iraq planned for January 2005, Patten suggests that ôa formal political dialogue" with the new government could be launched. EU assistance to support democratisation and human rights would continue, he said.

Measures in the third stage of the plan would include negotiations on EU-Iraq trade relations and assistance for economic diversification and poverty reduction.

The proposals outlined in the report were requested by EU leaders at a summit in Madrid last October which aimed to unite EU governments over the war in Iraq and focus on the longer-term challenges facing the country.

The EU foreign ministers are expected to endorse the report at a meeting on Monday (June 14) in Luxembourg.

The EU as a whole, including the Commission, member states and the accession countries have pledged 1.5 billion dollars in support to Iraq.

The EU has also welcomed the adoption of the UN Security Council resolution mapping out the transfer of power in Iraq after the U.S.-led coalition hands over sovereignty on June 30.

Patten said adoption of the resolution restoring Iraqi sovereignty was ôan opportunity for the EU to support Iraqi efforts to give their country a fresh start."

EU foreign policy chief Javier Solana welcomed adoption of the resolution, but he also expressed concerns over the security situation.

ôThe situation remains complex and security is still a serious concern," he said in a statement. ôIt is my sincere hope that the adoption of this resolution will contribute to bring stability and prosperity to the Iraqi people."

The UN resolution gives international legitimacy to the caretaker government that will take over from the U.S.-led occupying forces, and pledges that Iraq will become ôfully sovereign" to run its national affairs.

It also authorises U.S.-led troops to remain in the country at Iraq’s request, and gives them leeway to take ôall necessary measures" to fight the insurgency that has undercut efforts to stabilise the country.

Excerpt: