EU budget support is a means of delivering effective aid and durable results in support of EU partners’ reform efforts and the sustainable development goals. Budget support is central to the international cooperation policy of the European Union since it promotes its fundamental values (including transparency and the involvement of civil society) and fulfils the principles of development effectiveness.
In more detail, EU budget support provides a platform for policy dialogue with partner countries to agree on the reforms or development results which it can contribute to. It also helps strengthening country systems and budget processes to deliver these policies and offers additional fiscal space to implement the necessary actions or reforms, while rewarding performance when results are met. Moreover, budget support is a pivotal modality to build the foundations for further and faster progress towards the Sustainable Development Goals (SDGs), with its focus on macroeconomic stability and strengthened institutions. Economic governance proves to be stronger in countries where the EU provides budget support.
EU budget support is implemented in 90 countries or territories around the world, through 270 budget support contracts amounting to a portfolio of EUR 12.7 billion. Partner countries received a total of EUR 1.8 billion of financial assistance in 2017 through EU budget support. The EU is by far the largest grant budget support provider globally (70 % of the total). On average, it accounts for 40 % of EU national cooperation with third countries and plays a pivotal role in EU partnership. It also complements other EU operations by addressing reforms and systemic issues at all levels.
The Report for the year 2018: (a) highlights concrete results achieved by the partner countries for each SDG and explains how EU budget support contributed to them, (b) analyses the risk associated with budget support and (c) provides financial information on EU budget support with a breakdown per region and contract type.
More information available at: https://ec.europa.eu/europeaid/budget-support-trends-and-results_en