BRUSSELS - The European Union (EU) on Monday announced it will lift sanctions against Zimbabwe after it holds a peaceful and credible referendum on its constitution.

"The EU agrees that a peaceful and credible constitutional referendum would represent an important milestone in the preparation of democratic elections that would justify a suspension of the majority of all EU targeted restrictive measures against individuals and entities," read a conclusion adopted by EU foreign ministers who met in Brussels.

The statement said the EU was encouraged by progress being made by Zimbabwe's Government of National Unity (GNU) in implementing the Global Political Agreement (GPA).

EU foreign ministers welcomed the continued commitment of the Southern African Development Community (SADC) to support the implementation of the GPA.

They said the steps taken by the GNU to improve the freedom and prosperity of the Zimbabwean people justified the immediate suspension of the measures hitherto applied under Article 96 of the Cotonou Agreement.

After the escalation of political violence related to the 2002 elections in Zimbabwe, the EU decided to introduce restrictive measures as a means to put pressure on those considered responsible. These measures have been renewed each year since 2002.

In February 2011, the EU concluded that significant progress had been made in addressing the country's economic crisis and in improving the delivery of social services.

Fresh elections are expected in Zimbabwe sometime next year after a referendum on a new constitution.