Virtually unnoticed, the Prime Minister of the newly-emerging democracy in Mongolia, Tsakhiagiyn Elbegdorj, passed through the European Institutions in Brussels June 9 at the start of a European tour that also included The Netherlands and Germany.

Prime Minister Elbegdorj was to pay official visits to Belgium on 9-12 June, the Netherlands on 12-14 June and Germany on 14-16 June. He was to be accompanied by MP S. Otgonbayar, Food and Agriculture Minister D. Terbishdagva, Minister of Education, Culture and Science P. Tsagaan, Road, Transport and Tourism Minister G. Batkhuu and about 20 business delegates. Mongolia is a landlocked country, located between the Russian Federation in the North and China in the South. It expands on a territory of 1.565 Mio km². The country is increasingly urbanized - 63% of the population live in cities, some 800.000 inhabitants live in Ulaanbaatar ("The Red Hero"), the country's capital since 1924.

Its Population: 2.5 million (2003). Mongolia has a population density of only 1.7 people per km² - one of the lowest in the world.

The country is organising celebrations for the 800th anniversary of the foundation of the Mongol Empire, to take place in 2006. The event will consist of performances by horsemen featuring Genghis Khan's conquests, victories and battles. According to the plan 30,000 foreign tourists will visit Mongolia to see the show in 2006, 70,000 in 2007 and 100,000 in 2008. During the decades Mongolia was in the grips of the Soviet Union honouring Genghis Khan was forbidden out of concern it could lead to nationalist unrest.

Just a few days earlier, on 3 June the Parliament approved a law accepting the sovereignty of the Mongolian President. N. Enkhbayar former Prime Minister and Speaker of the Parliament, received 53.44% the majority of votes. This election May 22 was the fourth election for President in the country's 16-year democratic experiment.

After seven decades of communist rule Mongolia's first free multiparty elections took place in 1990. Since then the country has successfully consolidated its democracy and carried out far-reaching economic reforms. In 1992 a new Constitution, firmly based on democratic values, was adopted.

The latest parliamentary elections in June 2004 produced a victory for a coalition of the main opposition parties (MDC - Motherland Democratic Coalition). After protracted negotiations between the MDC and the Mongolian People's Revolutionary Party (MPRP - former communist party which formed most of the governments since 1990) a grand coalition government was finally constituted in September 2004. In December 2004 the MDC broke up. Most of its Members of Parliament subsequently joined the MPRP group and continue to support the government which now seems to have a stable majority in Parliament.

Prior to the political reforms of 1990, relations between the EU and Mongolia were limited. Since then, however, these relations have developed very positively. The Mongolian ambassador to the EU presented his credentials in 1990 and the Head of the EC Delegation in Beijing was accredited to Mongolia in 1991. In 1991 Mongolia was granted preferential access to European Community markets via the Generalised System of Preferences.

Since 1990 the EC has provided more than 60 EUR million grant aid to Mongolia, focusing mainly on support for rural development under the TACIS programme (Technical Assistance to the Community of Independent States). Since 1994 Mongolian organizations have also actively participated in the Small Project Programmes under TACIS (such as TEMPUS for university cooperation).

The EU is Mongolia's fourth trading partner, after China, Russia and the US. Copper and gold mining generate most of Mongolia's export earnings. The major EU import commodity from Mongolia is cashmere wool and related products (mainly imported by Italy and the UK). The main EU export items are machinery, office equipment, agricultural products and chemicals, coming principally from France and Germany.

Mongolia has contributed four rotations of troops to Operation Iraqi Freedom and also participates in Operation Enduring Freedom in Afghanistan.

Mongolia has also been active in North East Asia Security forums like the ASEAN Regional Forum (ARF), Council for Security Cooperation in Asia Pacific (CSCAP), and Shanghai Cooperation Organization, where they are observers. Mongolia has fostered constructive dialogue on difficult issues in the ARF Intercessional Group and will host a meeting on "Changing Security Perceptions" in June to enhance confidence-building measures in the region The Conference on Opportunities for Cooperation between the EU and Mongolia was held in Ulaanbaatar on September 28-29, 2004. Organised under the auspices of the European Commission, the conference marked the launch in Mongolia of the Asia-Latin America cooperation programme (ALA), including the Asia-wide programmes.

Important to the context of the Conference had been the signature two weeks earlier of the Memorandum of Understanding on the National Indicative Programme for Mongolia 2004-2006. This will provide €9m to Mongolia over the coming years. Taken together with money from other programmes and any humanitarian assistance which may be required, EU aid is set to top €10m over the period 2004-2006.