A key election set to take place later this month may help restore the image of Belarus, a country which has been described by some as Europe’s last dictatorship.

The almost complete lack of a free market economy has also greatly reduced any possibility for foreign investment in this country, but if the current election turns out to be free, fair and democratic, it may go a long way in opening up a new market in Eastern Europe.

According to a report in the Moscow Times, both the European Union and the United States have agreed to extend ties with Belarus and enter into a friendlier relationship, as long as the parliamentary vote set for September 28th, 2008, proves to be democratic.

Lidia Yermoshina, representing the Belarusian Central Election Commission, believes that the current election will once and for all “smash stereotypes” about the state of democracy in Belarus.

A total of 276 candidates of all political stripes are vying for seats in the Belarusian national legislature. So far, opposition parties have been granted permission to field 70 candidates in a total of 110 ridings.

This represents a notable improvement over the situation in 2004, when anti-government groups and candidates were effectively unable to contest the parliamentary elections.

The EU has indicated that it would be prepared to look at increasing trade, political and cultural ties with Belarus, if the election is deemed to be free and fair.

There is also a strong possibility that Brussels might provide Belarus with more financial aid in the near future.