EU : a new approach to aid

The EU will re-prioritise its delivery of aid to developing countries to ensure maximum impact on poverty reduction. On 13th of October, 2011, EU Commissioner for Development, Andris Piebalgs, presented the 'Agenda for Change' of EU Development policy and a new policy for EU budget support. These communications set out a more strategic EU approach to reducing poverty, including through a more targeted allocation of funding.
Future EU spending should concentrate on sectors which are key for long-term and inclusive growth, target countries that are in the greatest need of external support and where aid can make a difference.
EU aid should focus on sectors setting the foundations for inclusive and sustainable growth: good governance, agriculture and food security and clean energy.
A significant share of EU aid is delivered in the form of budget support: financial transfers to government budgets in developing countries, coupled with policy dialogue, performance assessment and capacity building.