Armenia is a partner country within the European Neighbourhood Policy (ENP). This country page contains, or links to, DG ECFIN’s recent analytical work on the economy of Armenia.
The EU held its latest Sub-Committee on Trade, Economic and Related Legal Issues with Armenian authorities in Brussels in November 2014. The Armenian authorities gave an overview of recent macro-economic developments in Armenia in 2013 and in the first half of 2014. They also presented their views on the relations with the IMF, the World Bank and other International Financial Institutions. The European Commission presented the EU economic outlook based on the ECFIN's autumn 2014 economic forecast and an overview of the policy measures that the EU has taken to enhance supervision of the financial sector, to promote investments and restore lending. Both parties declared their willingness to deepen economic and trade cooperation to the extent that this is not prevented by Armenia's commitments within the Eurasian Economic Union.
The next Sub-Committee will take place in Yerevan in the autumn of 2015 (to be confirmed).
The Armenian economy has been seriously hit by the international financial crisis. Since the second half of 2008, output has fallen, fiscal revenues have decreased and external financing needs have risen. The seriousness of the situation has led the EU to provide the country with Macro-Financial Assistance, a form of financial aid for partner countries experiencing a balance of payments crisis. On 30 November 2009, EU lawmakers approved a decision to provide up to EUR 35 million of grants and EUR 65 million of loans to Armenia, tied to specific economic and financial reforms, as well as general conditions concerning the respect of human rights and democratic principles.
The funds were disbursed in two tranches in 2011. Besides being conditional on a satisfactory track record for implementing IMF programme’s reforms, the disbursement of the second tranche of funds was also subject to the implementation of economic policy conditions agreed in a Memorandum of Understanding with the EU. These conditions focused on the following areas: debt management, the pension system, public internal financial control, external audit, procurement policy, tax administration, tax policy, and customs policy.
An ex-post evaluation was conducted in 2013 to assess the impact of this MFA operation.
The links below provide additional information on EU-Armenia relations: