The EU policy towards the Mediterranean region is governed by two coherent and complementary strategies: the European Neighbourhood Policy and the Union for the Mediterranean (a re-formulation of the Euro-Mediterranean Partnership, formerly known as the Barcelona Process). The Union for the Mediterranean forms a multilateral forum of dialogue and cooperation at regional level between the EU and its Mediterranean partners.

The Union for the Mediterranean

The Union for the Mediterranean is a new formulation of the existing (since 1995) Euro-Mediterranean Partnership. It was initiated in July 2008 and it unites all 27 member states of the European Union with 16 partners across the Southern Mediterranean and the Middle East. 
While maintaining the acquis of its predecessor, the Barcelona Process, the Union for the Mediterranean offers more balanced governance, increased visibility to its citizens and a commitment to tangible, regional and trans-national projects.
Some of the most important innovations of the Union for the Mediterranean include the rotating co-presidency with one EU president and one president representing the Mediterranean partners, and a Secretariat based in Barcelona that is responsible for identifying and promoting projects of regional, sub-regional and transnational value across different sectors.
The Union for the Mediterranean has also identified six priority projects which are at the heart of the of Partnership’s efforts, including projects for: 

• the de-pollution of the Mediterranean Sea;
• the establishment of maritime and land highways;
• civil protection initiatives to combat natural and man-made disasters;
• a Mediterranean solar energy plan;
• the inauguration of the Euro-Mediterranean University in Slovenia; and
• the Mediterranean Business Development Initiative focusing on micro, small and medium-sized enterprises.

The ENP: stronger co-operation

In 2004, the Barcelona Process (predecessor of the Union for the Mediterranean) was strengthened and complemented through a new Initiative: the European Neighbourhood Policy (ENP). The ENP builds on the regional approach set out by the Barcelona Process and complements it with country-specific Action Plans (AP). These are joint political documents that lay down the strategic objectives of the co-operation between the neighbourhood countries and the EU Action Plans set out a comprehensive list of jointly agreed priorities to be implemented by the neighbourhood country and the EU. Fostering economic growth through improving the conditions for sustained investment and productivity gains is a major priority in the APs. The following examples of growth-enhancing policy measures:

• achieve and maintain macroeconomic stability through prudent monetary and fiscal policies;
• develop the framework and supervision for financial services with the aim of improving access to finance, insurance and other financial services important to enterprises;
• address administrative, legislative and regulatory obstacles to the creation and development of firms;
• ensure the security of property rights, contract enforcement and investor protection;
• improve competition policy, continue trade liberalisation, remove restrictions on capital flows;
• undertake institutional and judiciary reforms, including capacity enhancement;
• support research and development, and improve the quality of education; and
• fight against corruption.

Creating jobs and reducing unemployment, especially among the young, remains the main development challenge faced by the MED region. Building conditions for higher, domestic and broad-based economic growth rates over a sustained period of time is crucial in this context.

The role of DG ECFIN

Within this general framework, the Directorate-General for Economic and Financial Affairs focuses on three clusters of issues:

• analysis and monitoring of these economies;
• regular economic dialogues with national authorities on economic policy issues; and
• designing, negotiating and implementing macro-financial assistance operations in those countries where there is a financing need and which qualify for the support.

The Union for the Mediterranean ECOFIN ministerial

Dating back to 2005, an annual EU-Mediterranean ministerial meeting brings together EU and Mediterranean ministers of finance and economy. The Euro-Mediterranean ECOFIN ministerial was renamed the Union for the Mediterranean ECOFIN ministerial after the establishment of the Union for the Mediterranean in 2008. This is a forum for high-level discussions on broad economic policy issues facing both the EU and our Mediterranean partners as both regions strive to face economic challenges like higher growth and more employment. DG ECFIN leads preparations on the Commission side and produces background and issues papers for discussion by the Ministers. The Commission is represented by the Commissioner for economic and monetary affairs.
The first Euro-Mediterranean ECOFIN ministerial (Rabat-Skhirat, 2005) agreed on four priority areas for raising growth and employment in the Mediterranean region: (i) improving the business climate to enable firms to invest, create jobs and expand; (ii) further liberalising trade and opening the economy, while simultaneously protecting the most vulnerable groups of the population, to increase competitiveness, efficiency and productivity; (iii) upgrading public institutions and governance systems to improve public service delivery, particularly in education, and raise transparency and accountability; while, at the same time, (¡v) consolidating macroeconomic stability and public finance management through further fiscal consolidation in countries with high debt ratios and high quasi-fiscal deficits, and maintaining prudent monetary policies.

In the Union for the Mediterranean ECOFIN ministerial meetings of 2009 and 2010, the discussion focused on the effects of the global economic crisis to the two sides of the Mediterranean, on the possible exit strategies from the fiscal stimulus policies and on the need to strengthening macro-prudential regulations and analysis of macro-financial linkages to help prevent future crisis. The Ministers also stressed the key role of the Union for the Mediterranean Secretariat in addressing social and economic challenges in the EU-Europe Mediterranean region by promoting concrete projects visible to citizens.

• Algeria
• Egypt
• Israel
• Jordan
• Lebanon
• Morocco
• Occupied Palestinian Territory
• Syria
• Tunisia