An EU official has announced the approval of a $128m aid package for Burma to develop the country’s infrastructure, in a sign of further easing of sanctions placed on the state.
Development Commissioner Andris Piebalgs said the package would be for improving the country’s health, education and basic infrastructure.
Piebalgs suggested that more sanctions will be lifted if elections, scheduled to be held in April, are free and fair.
"There is concern [on the government side] that they've made reforms, they released political prisoners, they opened up, but the sanctions are still in place," Mr Piebalgs said.
"Now it's very clear that the watershed is elections in April. If it goes as expected and is free and fair, then everyone would expect the easing of sanctions to continue."
The opposition leader Aung San Suu Kyi, who was released from house arrest last year, is standing for a seat in parliament.
"The president mentioned a lot about Aung San Suu Kyi and it was all positive. That was unexpected," Mr Piebalgs said.
"He said she was extremely important in the country and her participation in the political process was crucial. That's a very positive sign."
Aung San Suu Kyi candidacy accepted for elections - 06 Feb 2012
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Myanmar agrees ceasefire with Karen rebels - 13 Jan 2012
US hails dramatic change in Burma as Kachin complain of atrocities - 11 Oct 2012
