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European Union suspends aid to Honduras

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Associated Press

The European Union says it is suspending some $92 million in aid to Honduras to put pressure on the military-backed opponents of ousted President Manuel Zelaya to return to negotiations.

EU External Relations Commissioner Benita Ferrero-Waldner says in a statement released Monday that she took ``the difficult decision to suspend all budgetary support payments'' to Honduras.

The EU aid covers the 2007-2010 period.

Ferrero-Waldner appealed to both sides ``to refrain from any action'' that could escalate tensions.

Talks on resolving Honduras' leadership crisis broke off Sunday after the interim government rejected a proposed compromise that called for allowing ousted President Manuel Zelaya to serve out his term.

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