European Union rejects Marshall Islands money plan

MAJURO — The European Union has rejected a Marshall Islands country funding plan, telling this north Pacific nation that it needs to follow a model being implemented in other island countries.

Until the Marshall Islands resolves the conflict with the European Union it cannot begin drawing down at least $1.5 million annually for the first five year funding period offered by the EU. The Marshall Islands is one of six new Pacific countries that have become affiliated with the EU since 2000.

The Marshall Islands government recently produced a plan known as a “country support strategy,” the first step in accessing large-scale and long-term EU funding. The country support strategy focused on education and human resource development.

But the EU says the Marshall Islands should get in step with other Pacific islands by focusing on solar power and other alternative energy installations for remote outer islands.

“It’s ironic,” said one Marshall Islands official involved in the process who asked not to be named. “A year ago, the EU told us to produce our own plan. We did it, and then they reject it.” A group of Marshall Islands officials in government and the private sector have spent the last 12 months working on producing the country support strategy.

During recent visits, both EU Ambassador to the Marshall Islands Franz Baan and European Commission country officer for the Marshall Islands Tine Schmale emphasized the EU’s interest in financing solar power developments in the country. Baan told local officials that the EU didn’t want to come into the Marshall Islands on the “coat tails” of United States Compact funding, which is already injecting significant resources into education.

But another key road block to the Marshall Islands gaining approval for its education funding plan is administrative: the EU Pacific office based in Fiji has just four staff handling the 14 EU-affiliated Pacific nations. The Fiji office, according to Majuro officials, wants the Marshall Islands to get in step with other Pacific nations that are following the alternative energy path, which would make the Fiji office’s supervisory job easier.

Local officials say, too, that the EU has a heavy export-orientation to their aid program. France and other EU members are major producers of solar and other alternative energy and see the Pacific as a ready new market for their products.

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