Euro and Central America Property Boosted by Free Trade

The European Commission will meet with a the Central American delegation for the sixth time January 26 - January 30, for negotiations on an association agreement between the two regions. The EC also announced a €15 million aid package to support the strengthening of regional institutions in Central America and the participation of civil society in the process.

The agreement will, among other things mean a free-trade area between the European Union and Central America. Both parties are committed to securing the agreement this year.

Benita Ferrero-Waldner, European Commissioner for External Relations and Neighbourhood Policy said:

"This year promises to be both very eventful and full of challenges. We have to deal with an unprecedented economic crisis and to avoid any protectionist tendencies. There will also be important elections in several countries of Central America and in the European Union. In this specific context, the European Union underlines its commitment to greater stability and prosperity in Central America. We are entering a crucial phase of the negotiations on an Association Agreement between our two regions and this session in particular will be decisive. I am therefore asking the negotiators to intensify their efforts to reconcile their positions."

She continued:

"The recent history of the EU has shown that countries have everything to gain from cooperating, showing solidarity and uniting in their efforts to tackle the challenges of globalisation together. This is why the Commission has, from the outset, supported the Central American Integration System (SICA). Now, with this new €15 million programme, we hope to bring the SICA into the fast lane by helping it to reform and to respond more effectively to the concerns of its citizens."

When the agreement is finally reached it will be of major benefit to European and Central American economies, some of which still look favourable for overseas property investment this year. Just last week the online portal Property Abroad recommended Slovakia and Montenegro, the former because its economy and property values were expected to see moderate growth in 2009, and Montenegro because its economic growth has been impressive throughout the credit-crunch and all signs are that this will continue, especially with EU accession on the horizon.

The portal also recommended Belize as a destination for property investment because of the rapid price growth before the credit-crunch, and because property values are holding now as the global crisis continues to worsen.