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BBC NEWS | Americas | EU formally renews ties with Cuba
European Commissioner Louis Michel said the accord he signed with Cuban Foreign Minister Felipe Perez Roque was "a turning point for EU-Cuban relations".
Mr Perez Roque welcomed its respect for the island's political independence.
It will now receive 2m euros ($2.6m) of emergency hurricane recovery aid, with 30m euros ($38.9m) available next year.
An EU delegation will return to Cuba in November to determine the needs and priorities for the financing to be made available in 2009.
Is this another step in the European offensive to take advantage of the currrent US financial crisis - to gain alliances or neutrality from anti-US countries. The crisis at home in Europe is bad enough - and they have time to give aid to Cuba.
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