Wednesday July 08, 2009

EU-MEDITERRANEAN/

BRUSSELS, July 7 (Reuters) - The finance ministers of the European Union and the Mediterranean region agreed on Tuesday to boost economic ties and avoid ...

Wednesday July 08, 2009 EU-MEDITERRANEAN/   BRUSSELS, July 7 (Reuters) - The finance ministers of the European Union and the Mediterranean region agreed on Tuesday to boost economic ties and avoid protectionism in trade to overcome the economic crisis more quickly.   At their first meeting under the newly created Union for the Mediterranean, the ministers pledged to map out joint projects in transport, renewable energy, marine pollution and the creation of small and medium-sized enterprises.   These will be financed with EU aid funds, although no concrete numbers were given.   "The southern shore of the Mediterranean have reiterated their commitment to continued openness of their economies, accelerated liberalisation of trading system," Egypt's Finance Minister, Youssef Boutros-Ghali, told a news conference.   Swedish Finance Minister Anders Borg said: "This crisis is not only a financial matter, but also a matter of food security and cooperation to fight poverty. International cooperation is very important so we can come out stronger from this crisis." The EU said its southern neighbours could count on generous investment from the bloc's companies, but the countries had to ensure that good governance and stability.   "One has to create an environment conducive to foreign direct investment, legal certainty, institutional stability... and a clear tax system," EU Monetary Affairs Commissioner Joaquin Almunia told the conference.   "Administrative burden for companies has to be limited, and there needs to be investment to improve infrastructure," he said.   The Union for the Mediterranean, a pet project of French President Nicolas Sarkozy, was launched last year as a forum for regular meetings among its 43 countries, with the EU providing financial aid and closer ties in exchange for reforms. (Reporting by Marcin Grajewski; Editing by Ron Askew).