LUXEMBOURG - The European Union sanctioned Madagascar yesterday over the "unacceptable" actions of its "de facto authorities" who had seized power last year by slashing funds.

LUXEMBOURG - The European Union sanctioned Madagascar yesterday over the "unacceptable" actions of its "de facto authorities" who had seized power last year by slashing funds.

Interior ministers meeting in Luxembourg formally endorsed the move to suspend all budgetary as well as development funds to Madagascar.

The EU move came three days after Andry Rajoelina, who grabbed power in an army-backed coup in March 2009, appointed generals as head of the armed forces and the police, with military men also taking over the health, fishing and environment ministries.

Madagascar's Prime Minister Camille Vital, a retired general, remains at the top of the government.

Rajoelina had announced plans to reshuffle the government after the failure of the latest round of internationally-backed talks at ending the country's political crisis at the beginning of the month. - Sapa-AFP