The European Union's 2006 bilateral overview noted that economic growth in the Philippines was hindered by unemployment and an unstable domestic scenario. It called on the country to enhance its international credibilty.
Manila (AsiaNews) Poverty alleviation, excessive population growth and uneven distribution of wealth are problems inhibiting the economic progress of the Philippines, according to the European Union's 2006 bilateral overview presented on 30 September.
In Strasbourg's view, the Asian country "should work harder to improve the socio-economic and security situation by acting on the challenges of good governance, restoring peace and security and economic reform."
The report said problems linked to the Philippines' international credit rating could be attributed to "fiscal problems" but that these "were not the only obstacle".
Experts who drew up the report said: "Major economic challenges for Manila remain reduction of the budget deficit, a rationalization of the public debt, massive investment in the power sector, creation of up to 10 million jobs and the restoration of international confidence in the country."
The desire to boost bilateral relations between the EU and the country was expressed on 12 September, during a meeting between European Commission President Barroso and Filipino President Arroyo.
Economic accords, human rights, the Mindanao peace process were discussed during the meeting, as well as support for international programmes dealing with economic cooperation.
Strasbourg confirmed its willingness to cooperate in the country's development and said it was "most interested" in promoting programmes aimed at poverty reduction and bilateral investments.