A U.N. Security Council resolution passed in June calls on Yemen to convene a national dialogue, restructure the military under a unified command and implement political reform with the aim of general elections in 2014.
The European Commission said new funding would target democracy, legal reforms and decentralization. The latest aid package is valued at $22.3 million.
"The EU has supported Yemen's transition process right from the start and this new support represents our on-going response to the aspirations of the Yemeni people for a just, democratic and well-run Yemeni state." Andris Piebalgs, European commissioner for development, said in a statement.
The U.S. State Department said the United States planned to provide $337 million in financial assistance to the developing Yemeni government.
"Yemen has experienced a significant transformation over the past year and is charting a path to democracy," a statement read. "A successful democratic transition will require Yemen to overcome a number of serious, complex and inter-related challenges."
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