Yesterday, the European Commission (EC) and the International Monetary Fund (IMF) have signed a grant agreement for an €8 million (US$8.7 million) capacity development program on fiscal reforms in Southeastern Europe (SEE).
“Strengthening public financial management (PFM) is one of the core priorities of the EU’s strategy on enlargement. It is essential to deliver macro-economic stability, improve transparency and effectiveness in managing public funds and delivering better services to citizens, and is a pre-condition for sustainable growth. Given the IMF’s expertise and track record on economic governance, I am delighted to team up with them under this program. This cooperation will enable us to achieve our joint objectives and further help the countries in the region as they seek EU membership,” Johannes Hahn, Commissioner for Neighborhood Policy and Enlargement Negotiations, said.
Background Information
Partnering with the EU will provide the IMF with more resources to respond to the capacity development needs of the region, thus helping governments to better implement policies and manage their budgets in a more efficient and effective manner to the benefit of their citizens.
Supporting macroeconomic and public finance institutions and policies in member and partner countries has long been a common objective of the EU and the IMF. The EU/IMF partnership has intensified in the last five years with the organizations supporting each other’s work through complementary EU budget support and IMF lending programs. Both organizations engage in regular consultations at the staff and management levels.
Globally, the EU is now the second largest contributor to IMF capacity development, with contributions of about US$150 million to date. The EU also contributes to the IMF’s network of regional technical assistance centers, and to almost all of the IMF’s topical and country trust funds, as well as to a range of bilateral projects, including in EU enlargement countries.
