EU freezes financial aid to Honduras due to political situation

The European Commission had scheduled some 223 million euros in aid to the country, including 65.5 million to support the Honduran state budget.

The Honduran military arrested Zelaya on June 28, the day polls were due to open for a nonbinding referendum on the extension of the non-renewable, four-year presidential term of office, and flew him to Costa Rica.

Talks between Honduras' de facto government, headed by interim President Roberto Micheletti, and Zelaya broke down on Monday, with the deposed leader pledging to return home next weekend. Zelaya's representatives said they would no longer participate in talks with Micheletti's delegation.

"I strongly appeal to both parties to refrain from any action or declaration which might further escalate tension, thus making the prospect of a solution more difficult," Ferrero-Walder said.

The head of the interim government's delegation said on Sunday that Costa Rica's compromise proposal that Zelaya return as leader of a national unity government was "absolutely unacceptable."

Zelaya later told reporters in the Nicaragua capital of Managua that he would return home "next weekend." An attempt by Zelaya to return to Honduras earlier in the month was blocked by coup supporters, with crowds forcing his plane to fly on to Nicaragua, Kazinform cites RIA Novosti. See www.en.rian.ru for full version.