“We welcome very much the agreement and we hope we see the agreement implemented,” EU foreign policy Chief, Javier Solana said. “The sanctions for the moment will not be changed today, the decision will be probably taken in October,” he added in Brussels.

“We have to analyze it (the deal) in more detail,” said Solana. “We are still not sure what is going to be the outcome of the agreement,” he added

The EU, after the discredited presidential election run off won by Mugabe tightened more sanctions on his government and warned that more sanctions would be slapped just before the signing of the power sharing deal.

EU Development Commissioner, Louis Michel, said although the three leaders had finally endorsed the agreement, the issue of channeling rescue packages to Zimbabwe has to be discussed.

The Union cut their relationship with the Zimbabwean government in 2006 because of flaws by the Mugabe government. The donor community also closed its doors on the Zimbabwean government further plunging the country into suffering.

Meanwhile, the International Monetary Fund (IMF) hailed the power deal. In a statement, IMF head Dominique Strauss-Kahn said the door was open for talks with the Zimbabwean government to revive the economy which was on its knees.

“The new leadership needs to implement robust policies that can begin to address the economic crisis,” Strauss-Kahn said in a statement. “We stand ready to discuss with the new authorities their policies to stabilize the economy, improve social conditions, and reduce poverty,” he added

“I encourage the government to take steps to show clear commitment to a new policy direction and to seek the support of the international community.”

Inflation

Zimbabwe has a record inflation of over 20 million percent while chronic shortages of foreign currency and food continue to trouble the country once a breadbasket of Southern Africa.

Speaking at the official signing of the power deal, SADC chairman and South African President Thabo Mbeki appealed to regional leaders to assist Zimbabwe during these trying times.

“We have to assist Zimbabwe and demonstrate that we are capable as a continent to take care of our problems” he said

“We must get the seed, we must get the fertilizer and we must get the fuel as a matter of urgency and as a region I’m sure we can achieve that” he said.

On Monday, Zimbabwe’s political leader added another chapter in the book of history after Arthur Mutambara of the breakaway MDC, Robert Mugabe—Zanu PF and Morgan Tsvangirai of the mainstream MDC signed a power sharing agreement that would see them working together in an inclusive government to end the economic crisis in the country.