Nepal is the poorest country in South Asia and internal conflict has limited its economic growth. The restoration of peace in 2006 brought some stability and a basis for new growth.
The country’s main difficulty is building foundations for its new nationhood, notably a solid and robust democratic system of good governance and a sustainable economic development strategy. European Union cooperation is helping to improve the living conditions of the Nepalese, particularly in rural areas, and is enhancing the country’s economic performance. The consolidation of democracy and mitigation of internal conflicts are vital to the country's development.
The Multi-Annual Indicative Programme (MIP) 2014-2020 for Nepal details the different allocations.
The EU-Nepal Country Strategy Paper (2007-13) details the priorities for cooperation.