EU seeks a bigger role in Pacific

The European Union has put to bed fears it may scale back its work in the Pacific with the launch of its first formal strategy for the region - but it has also signalled it wants a more active political role.

The strategy, placing an emphasis on developing sustainable management of natural resources and more efficient aid delivery, was unveiled just days after Japan promised the island nations a big rise in financial aid.

China has recently also offered sizeable assistance with loans.

The document, released in Papua New Guinea, is the first formal Pacific strategy the 25-member-state union has committed to. It sends a clear statement that the union does not plan to succumb to increased domestic pressure to redirect more of its development funding to regions such as Africa.

In opting to maintain or possibly increase its Pacific involvement, the European Commission - the union's executive arm - has also sent a strong message about its desire for a greater say in the region.

It has criticised the fact its engagement with other regional players is limited to the annual Pacific Islands Forum's post-forum dialogue.

Foreign Affairs Minister Winston Peters and his staff, concerned about a potential EU withdrawal, have made regular representations.

Speaking from Japan, Mr Peters welcomed the strategy's release "and the ongoing European presence and commitment to Pacific development that it foreshadows".

New Zealand maintained "a close dialogue" with the EU on development assistance and Mr Peters said in a range of meetings with senior EU figures "the need for stronger EU engagement in the Pacific has been constantly encouraged".

The commission injected about $4 billion into Pacific aid between 1975 and 2005 and is working on a new five-year funding package to begin in 2008.

Delegation of the European Commission to New Zealand charge d'affaires Maurice Maxwell said yesterday the question had been raised in Europe of why the EU was involved in the Pacific at all.

But the strategy released underpinned a commitment to significant future aid funding in the region, he said.

The strategy's emphasis on the global importance of fostering development in the Pacific is designed to counter European critics seeking funding changes.

The announcement follows a meeting of Pacific leaders in Tokyo last week, where the Japanese Government promised fresh aid of about $630 million over three years to the region.

The money was pledged in exchange for Pacific support for Japan's bid to win a permanent seat on the UN Security Council, but was also seen as a bid to increase its influence in the region, in which China and Taiwan are also flexing their muscle.

In Fiji last month, Chinese leader Wen Jiabao offered a sweeping package of economic aid to nations that support a one-China policy, including zero-tariff agreements and $590 million in loans.

The European commissioner for development and humanitarian aid, Louis Michel, said the strategy was the first one developed in 30 years of EU-Pacific relations.

It aimed to strengthen political dialogue and focus development co-operation on sustainable management of natural resources, he said.

"It will reinforce our solidarity and consolidate a partnership for sustainable development that will help to reduce poverty, in a region threatened by climate change, poverty and weak governance."

Strategy goals

Building stronger political relations on interests of common concern such as global political security, trade and development.

Focusing development co-operation on areas of important Pacific need such as sustainable natural resource management.

Increasing aid efficiency, including better co-operation between donors.