EU observers to quit Zimbabwe

European election observers prepared to pull out of Zimbabwe today, a day after the EU imposed sanctions against Robert Mugabe and his inner circle for refusing to let them do their job.

The first of 26 EU observers were expected to leave the violence-racked nation where Mugabe faces the biggest challenge to his 22 years in power from opposition leader Morgan Tsvangirai in next month's presidential election.

Zimbabwe reacted defiantly to the EU actions, saying they amounted to "economic terrorism". South Africa said the EU's moves were regrettable and that it would send more observers to join African observers already in Zimbabwe tomorrow. " Our objective remains the need to create a climate for free and fair elections in Zimbabwe," said South African foreign affairs spokesman Ronnie Mamoepa. "The sanctions are, therefore, unfortunate and regrettable."

The sanctions, which ban travel to EU countries by Mugabe and 19 close associates and freeze their assets in the EU, followed a report from Pierre Schori, the head of the observer mission who was expelled by Zimbabwe on Saturday.

The Swedish diplomat said law and order was unravelling in the country. "There are no grounds for an effective or credible EU observer mission," he added. The sanctions also ban the supply of arms and technical advice and equipment which could be used for internal repression in Zimbabwe.

Mugabe's information minister Jonathan Moyo said the EU was hiding behind the cover of democracy to protect white minority interests in the former British colony."What we are now dealing with is organised economic terrorism."