New publication explains EU budget support in Eastern Partnership countries

EU has published a publication, explaining the main form of EU assistance in the Eastern Partnership (EaP) region - budget support. Criticised and questioned by some, the brochure explains what is budget support, how it works, what are the criteria attached, and why the EU uses budget support for assistance to its Eastern partners.

According to the brochure, budget support involves dialogue, financial transfers to the partner country, performance assessment and capacity development, and it claims to support reforms in mutually agreed sectors, as well as in macroeconomic and public finance policy,

Once eligibility criteria and mutually agreed conditions are met, budget support sees EU funds transferred to the national treasury of the partner country. However, the payments are tied to performance, with a strong focus on the results of reform.

Five countries benefit from EU budget support in the EaP region: Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The brochure gives full details of the budget support programmes implemented in the five eligible partner countries:

Armenia

· EU support of justice reform (2009-12); EU funding: €18 million

· EU support of vocational education and training (2010-15); EU funding: €21 million

Azerbaijan

· EU support of the energy reform programme (2008-12); EU funding: €14 million

· EU support of justice reform (2009-14); EU funding: €16 million

Georgia

· EU support of public finance management reform (2011-2014); EU funding: €11 million

· EU support of criminal justice system reform (2012-16); EU funding: €24 million

· EU support of regional development (2011-16); EU funding: €19 million

Moldova

· EU support of health sector reforms (2009-13); EU funding: €53 million

· EU support of economic stimulation in rural areas (2010-16); EU funding: €59 million

· EU support of energy sector reform (2011-14); EU funding: €43 million

Ukraine

· EU support of the implementation of Ukraine’s energy policy (2008-12); EU funding: €87 million

· EU support of the promotion of mutual trade by removing technical barriers to trade between Ukraine and the EU (2009-13); EU funding: €45 million (EU Neigbourhood Info Centre)

Full broshure

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