Have the state and the sugar producers finally reached a compromise?

No. The Mauritius Sugar Producers Association (MSPA) has made another proposal to the Prime minister, Navin Ramgoolam, but the latter has said the new conditions are simply ?unacceptable?. The bones of contention are: the land grant and the energy policy.

What have they proposed on those two issues?

They said they were keen to give 2,000 acres of lands to the government on the condition that public institutions also give some of their lands. But the government obviously does not agree. As far as energy is concerned, the government finds it unacceptable that the sugar producers are ?making so much profit? to the detriment of the Central Electricity Board.

Is there a risk that the European Union does not allocate funds if conditions of the Multi Annual Adaptation Strategy (MAAS) are not respected?

The conditions of the MAAS were agreed by all parties ? the government, the sugar producers and the EU ? which accepted to grant aid under these specific conditions. However, the EU representatives made it clear that the whole programme would have to be reviewed if the conditions of the MAAS were changed.

Does this mean that Mauritius will lose the whole aid package?

No, not necessarily. But the negotiations would have to start again right from the beginning. However, the spokesperson of the European commissioner, Louis Michel, made it clear, ?As those targets form the basis of our financing agreements, any lack of progress can put some earmarked EU funds at risk.?