EU welcomes Zimbabwe deal, eyes possible aid

BRUSSELS (Reuters) - The European Union welcomed a power-sharing deal in Zimbabwe on Monday and said it stood ready to help the African country rebuild if the new government restores democracy and the rule of law.

However the bloc will put on hold any decision about the future of existing sanctions on Zimbabwe while it studies the exact details of the agreement, EU foreign policy chief Javier Solana and other officials said.

Zimbabwe's President Robert Mugabe and the opposition signed the agreement on Monday, which ended months of political wrangling after a widely condemned presidential election.

"We welcome very much the agreement," Solana told reporters as he arrived for a meeting of EU foreign ministers.

A joint statement agreed by ministers noted the 27-nation bloc was ready to help rebuild the country's shattered economy.

"The EU is ready notably to adopt a series of measures of economic support and help to a transition government that takes measures to restore democracy and rule of law in Zimbabwe, notably by organizing transparent and pluralistic elections."

Before last week's power-sharing deal, the EU had planned to add on Monday more names to a list of Zimbabwean officials whose assets are frozen and who are banned from traveling to Europe.

One EU official said news of the accord had prompted a new debate over whether existing sanctions should be lifted, but several ministers said such a step was premature. Among them was the foreign minister of Zimbabwe's former colonial ruler, Britain.

"All discussions on sanctions more or less is on hold until we see the details of the deal and until we see the deal translated into action on the ground," British Foreign Secretary David Miliband said.

"Further engagement of the international community with the new government will obviously depend on the details of its program, the details of its composition, and the actions that it takes to bring change in Zimbabwe ..." he added.

Existing EU sanctions on Zimbabwe include an arms embargo, visa bans and asset freezes on 168 senior officials including Mugabe, as well as a few companies. The bloc has also frozen development aid but still provides humanitarian aid.

Analysts say the power-sharing deal is fragile and will require former enemies to put aside their differences and work closely to overcome skepticism, especially from Western powers whose financial support will be vital for recovery.

(Writing by Ingrid Melander; Editing by Matthew Tostevin)