(BRUSSELS) - The European Commission announced Monday a new programme to stem the flow of illegal immigrants to Europe by helping countries where would-be migrants come from and transit through.

The programme will have a budget of 380 million euros (512 million dollars) for the 2007-2013 period, an average increase of almost 10 percent a year over its predecessor, the EU's executive arm said in a statement.

It will offer development incentives to non-EU countries that better manage migrant flows, encourage them to fight illegal immigration and ease the return of people trying to get to Europe.

"It will focus on countries along the southern and eastern migratory routes towards the Union, although other migratory routes such as southerly migrations will also be covered," a spokesman on EU justice affairs said.

Between four to eight million people are estimated to be living illegally in the European Union, with 500,000 illegal immigrants arriving every year.

The announcement was made two days after an EU summit at which the 27-member bloc's leaders underlined "the importance of cooperation with third countries in managing migratory flows".

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