February 19: A memorandum of understanding on the next phase of development cooperation between Bhutan and the European Commission was signed yesterday.

The European Commission has committed around 14 million Euros for the period up to 2013.

The financial envelope up to 2010 is eight million Euros and was subject of the MOU signed yesterday. It was signed by the Ambassador and Head of Delegation of the European Commission to Bhutan, Daniele Smadja and the Foreign Secretary Yeshey Dorji.

It will support the sustainable reduction of poverty in Bhutan within the framework of renewable natural resources and Good Governance.

The financial envelope for the second phase of development cooperation from 2010-2013 will be six million Euros. It will support trade facilitation along with Renewable Natural Resources and Good Governance.

The Foreign Secretary Yeshey Dorji said the European Commission is one of Bhutan’s largest multilateral development partners .

"We attach great importance to our relation with European Union. The core areas of European Commission support to Bhutan are Renewable Natural Resources and Good Governance," he said.

The Ambassador and Head of Delegation of the European Commission to Bhutan, Daniele Smadja said the signing of the memorandum of understanding will pave the way for future cooperation between Bhutan and European Commission.

" This is the 26th year that European Union has been Bhutan’s development partner. And with this MOU we are continuing this cooperation and we find this very important especially at a time when Bhutan’s 10th Five Year Plan is about to be finalized and adopted by the new parliament and government and also at a time when Bhutan is having its first parliamentary elections. We are very happy to be able to continue this cooperation," she said.

She added the EU support is mainly in terms of project but will be ready to consider budgetary support.

" We have been very impressed with our discussions during this round table meeting," said Ms. Smadja