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EU discusses the reconstruction of Iraq

European finance leaders on Saturday discussed for the first time possible financial EU involvement for reconstructing post-war Iraq.

"I am sure we can make a good contribution," Greek Finance Minister Nikos Christodoulakis, chairman of a two-day informal EU finance ministers meeting in Athens, told a news briefing.

Some European companies have expressed fears that they will be cut out of lucrative rebuilding business in Iraq, on the grounds that America led the invasion and will subsequently hand out the big contracts to US firms.

Europe also wants multilateral organisations like the UN to play a key part in the reconstruction of Iraq, which is becoming an urgent issue with US troops already in Baghdad. But the US has ruled out a leading UN role and says that Washington, and those actively involved in the fighting, should come top of the list.

Christodoulakis stressed that, for the moment, humanitarian aid to the Iraqi population remained "the top priority" for the EU, which has already set aside 100 million euros (US$107.3 million) for this purpose.

Finnish Finance Minister Sauli Niinisto also said there was broad consensus among EU finance ministers that the 15-nation bloc should play an active role in post-war Iraq.

"It is well realised there will be a strong European role in reconstruction ... a European role, a common voice, is most needed and important," he told reporters.

The same thought was voiced by German central bank governor Ernst Welteke, who said it was natural that the reconstruction would be carried out by the EU and US together.

"I believe the post-war order would be supported by everybody. There is no question about it," he said.

Discussions were still at a preliminary stage, however, and ministers said it was difficult to make an estimate on the overall cost of rebuilding war-torn Iraq.

"At the present time it is not possible to say what kind of reconstruction we will have or when the reconstruction will begun," European Economic and Monetary Affairs Commissioner Pedro Solbes said.
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