In a statement from EU headquarters in Brussels, Belgium, EU Commission President Jose Manuel Barroso said the agreement showed the "full support and solidarity" of the EU with East Timor. Prime Minister Mari Alkatiri witnessed the signing ceremony.
The money will be used over the next two years, with two-thirds allocated to rural development projects and the remaining Ђ 6 million (US$7.6 million) used to bolster the country's fragile state institutions, the AP reports.
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