Armenia is one of the 16 partner countries whose relations with the EU are framed by the European Neighbourhood Policy (ENP). This country page presents information on DG ECFIN’s activities and economic cooperation with Armenia.
DG ECFIN conducts regular analysis on macroeconomic and financial developments in Armenia.
The EU and Armenia hold regular macroeconomic dialogues in the framework of the Subcommittee on Trade, Economic and Related Legal Issues. Meetings of the Subcommittee provide both partners with an opportunity to exchange views on their respective economic situations and outlooks, and on the major structural challenges that they face.
The latest Subcommittee meeting took place in Yerevan on 16 October 2015. The Armenian authorities gave an overview of macro-economic developments in Armenia in 2014 and in the first half of 2015. They also provided an update on the implementation of the Armenia Development Strategy 2014-2025, and cooperation with the IMF, the World Bank and other International Financial Institutions. The European Commission presented inter alia the EU economic outlook based on the latest 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 Armenian economy has been seriously hit by the international financial crisis. Since the second half of 2008, GDP growth has fallen significantly, from above 10% on average in the decade preceding 2008 to around 4% on average since 2010. Fiscal revenues decreased accordingly and external financing needs arose. The seriousness of the situation led the European Commission to propose in October 2009 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 low-interest 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 reforms agreed with the IMF under its programme with Armenia at the time, the disbursement of the second tranche of funds was also subject to the implementation of economic policy measures agreed in a Memorandum of Understanding with the EU. These 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: