The future approach to EU budget support to third countries
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A significant share of EU aid is delivered in the form of budget support. In this communication, the Commission proposes a new policy on budget support, with a strong emphasis on contractual partnership between the EU and partner countries.Three types of contracts are proposed:
- “Good governance and development” contracts aimed at providing general budget support to countries that agree to respect fundamental values, such as human rights, democracy and the rule of law;
- “Sector reform contracts” to help ensure budget support for sector reforms;
- “State-building contracts” for countries in an extremely fragile situation.
To ensure a better coordination of budget support between the Commission and Member states, the Communication proposes to work towards a “single EU good governance and development contract” and identifies ten principles to underpin coordination.
European Commission - October 2011
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