● <B>Has the European Union (EU) agreed to grant the allocation promised in connection with the reform of the sugar industry?</B>

Now that the state and the sugar producers have agreed on the main principles of the reform, the EU has also softened its stand towards Mauritius.Discussions have been taking place during the past few days to reassure the EU about the reform. Mauritius was supposed to meet specific targets according to European criteria before the 31st of December to benefit from the financial grants. However, the EU now considers that ?satisfactory progress? has been made concerning the reform and has agreed to allocate 36 million euros (Rs 1.6 billion) by next February.

● <B>What is the total amount of the grant? Will the country benefit from it?</B>

The total sum of the aid amounts to 58 million euros ? Rs 2.6 billion ? which means that there will be 22 million euros more to be granted later on. This will depend on specific economic indicators or on the overall macro-economic performance. The minister of Finance, Rama Sithanen, has however ?asked for more flexibility? because indicators linked with the sugar sector might not meet European standards.

● <B> What about the centralisation programme?</B>

The minister of Agro-Industry, Arvin Boolell, announced that his ministry had agreed to the closure of three sugar factories up to now- these are Mon-Trésor-Mon-Désert, Riche-en-Eau and St Félix. Sugar producers have a lot on their plates by the end of the year to make sure all commitments made to the EU are respected.