The EU provides direct economic support to partner countries, both at the macro- and microeconomic levels. These include supporting national budgets, funding regional integration activities and micro-finance initiatives.
EU development assistance can be used to help developing economies to stand, metaphorically, on their own two feet. Aid can be used to assist economic reform, to take the sting out of painful reforms, to help create jobs, and more.
At the macro-economic level, the European Commission undertakes macroeconomic analysis to promote economic development, and provides what is known as budget support to help underwrite macroeconomic stability in eligible countries. The page on Macroeconomic support will tell you more about it.
The European Commission carries out assessments of public financial management issues in beneficiary countries. Find out how these help to improve the way public finances are managed and administered in partner countries.
The European Commission also aims to increase developing countries' domestic revenues by building stronger tax systems and fighting tax evasion internationally. Find out more in the tax and development page.
The EU employs a subtle blend of trade and aid to promote development in partner countries. Aid runs the risk of promoting a dependence culture, while trade alone can hurt the most vulnerable segments of society. Find out how the Commission achieves this delicate balance by visiting the "Trade" page.
The economic benefits of integration are well documented and plain for all to see in the EU experiment itself. The European Commission strongly believes that regional integration is an effective means of achieving prosperity, peace and security. Learn more about how the Commission promotes regional integration among partner countries.
The private sector is an important generator of wealth and creator of jobs. That is why it is important to support measures to promote private enterprise in developing countries. To find out more, visit the "Private sector" page.
For the most impoverished, one of the biggest barriers preventing them from earning a decent living is a lack of access to funding. For this reason, microfinance is part of EU development policy. More information on this is available on the "Microfinance" page.