The statement read: "While the EU recognizes there are still serious challenges in the implementation of the GPA, it remains fully committed to the Government of National Unity and in acknowledgment of the progress made has informed Zimbabwe that 130 million could become available under the 10th European Development Fund. In addition, a complementary envelope of 8.6 million would be available to Zimbabwe to cover unforeseen needs such as emergency assistance."

According to the statement the funds are in addition to 365 million Euros that the EU has already given to Zimbabwe since the signing of the GPA. "The EU will follow the ongoing constitutional and electoral reform processes with great interest," the statement said.

Christian Leffler, EU Deputy Director General for Development, confirmed to SW Radio Africa that the funds had been set aside and the next step was to develop a strategy for its use, along with local organizations and government.

Asked whether the EU was aware of the violence that had erupted in Zimbabwe and the issues that remain in fulfilling the GPA, Leffler said the money was for humanitarian assistance.

He added: "I can see that concern. At the same time we must be careful not to punish people anywhere in the world, be it Zimbabwe or any other country, for the possible failings of their leaders."