Eritrea

Relations between the European Commission and Eritrea date back to Eritrean independence (1993). Past cooperation has focused on addressing the pressing issues of reconstruction following the devastation of the war of independence and the border conflict with Ethiopia (1998-2000).

The political landscape in Eritrea is still blighted by the lack of progress towards border demarcation with Ethiopia, in spite of the final and binding decision of the Ethiopia-Eritrea Boundary Commission (EEBC) in 2002. The Popular Front for Democracy and Justice (PFDJ), as the only political entity in Eritrea, has been in power since independence in 1993. The Constitution of Eritrea was ratified by the Constituent Assembly in 1997 but, owing to the special circumstances stemming from the above-mentioned border issue, has not been fully implemented.

Eritrea's GDP per capita is currently estimated at US$200. Income inequality in Eritrea remains low. Private-sector activity, mainly of a merchant and service delivery nature, remains constrained and weak. The Government of the State of Eritrea (GSE) does not publish an annual budget.

While approximately two thirds of the population live under the national poverty line, Eritrea is projected to achieve eight of the ten MDG targets by 2015.

This Country Strategy Paper (CSP), which covers the period 2009-2013, is the result of the country analysis and the assessment of past cooperation and lessons learned, and has taken into consideration the role of other donors. The CSP follows the rationale of moving increasingly away from post-conflict rehabilitation towards a more development-oriented approach. It reflects the priorities set by the GSE in the 'Eritrea – EU ties: broad outline of medium term cooperation programme', and is consistent with the commitment to poverty reduction enshrined in the Interim PRSP.

The CSP is based on the GSE's own response strategy to the key challenges identified:

• Low level of food production and productivity;
• Weak transport system with high operating costs and poor safety standards;
• Weak justice system and poor capacity across the public administration.

Focal sectors:

• Food security / rural development
• Infrastructure rehabilitation

Non-focal sectors:

• Governance
• Restoration of national heritage

Implementation shall be through a traditional project approach with decentralised management. As with the 9th EDF, current conditions in Eritrea limit the possibility of recurring to programme approach and budget support as implementation modalities. Cross-cutting issues such as gender and environment will be mainstreamed into the focal and non-focal sectors.