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6. Aid row threatens free trade pact. Plans to enter into a political and economic pact between the European Union and the Mediterranean countries of North Africa and the Middle East may fail on the issue of aid. The European Commission's blueprint for Mediterranean partnership, which would establish the world's largest free trade area, also extends the co-operation on foreign and security policy and joint action against terrorism, and would be accompanied by a doubling in EU assistance for the region. One of the commission's central objectives is to provide an economic underpinning for the Mid-Dle East peace process. The initiative is similar to the plan that led to the creation of the European Economic Area, a free-trade pact between the EU and most of the European Free Trade Association (EFTA) countries, the initia-tive, however, threatens to widen the strategic gulf between the The EU's north and its drive to extend the EU towards the east and the south.
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