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Aid and reform: How can the EU stimulate development in its neighbours?
The European Neighborhood Policy (ENP) is a foreign policy instrument of the European Union (EU) that seeks to bring the EU's eastern and southern neighbors closer to the EU. These countries include some that hope to one day become members of the European Union or to integrate more closely with the bloc. Countries to which the ENP applies include southern countries such as Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia; and eastern countries such as Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. This policy was established to avoid creating new borders in Europe and prevent new dividing lines from appearing after enlargement.
Under EU plans, the reform process in these countries is usually supported by an action plan signed between Brussels and the target country.
The EU provides financial assistance to these neighboring countries, provided that they meet government reforms, economic reforms and other related positive transformation conditions. This process is usually supported by a mutually agreed action plan. To receive more funding, neighbors must commit to political, economic, trade, or human rights reforms. In exchange for reform commitments, these countries may receive duty-free market access and financial or technical assistance.
Historical BackgroundThe European Neighborhood Policy was conceived after the enlargement of the European Union in 2004, with the entry of ten new member states. In order to prevent the emergence of new borders, the ENP was designed to promote connections and integration between Europe and its neighbors. The policy was first proposed by the European Commission in 2003 and has been expanded over time. In 2011, the European Commission launched a new and more ambitious neighbourhood policy and pledged to provide more than 1.2 billion euros to support its implementation.
The new policy aims to strengthen relations between individual countries and regions through a "more money for more reform" approach.
Sources of Funding
As policy evolved, the European Neighborhood Instrument (ENI) was implemented in 2014 and merged into Global Europe in 2021. The underlying principles of this funding initiative are to reward top performers and provide funding more flexibly. The ENI has a total budget of €15.4 billion and temporarily replaces the previous European Neighborhood and Partnership Institution (ENPI). The funds are mainly used for a series of projects aimed at enhancing cooperation and development with neighboring countries.
Protocol Framework
In recent history, agreements with neighbouring countries have usually been made as part of two EU policies, the Stabilisation and Association Process (SAP) and the Neighbourhood Policy (ENP). The content of these agreements does not mention EU membership, but focuses more on reform commitments and economic cooperation. According to the agreement, the EU will consult with various countries, formulate relevant national reports and action plans, and clarify the direction of reform in the next three to five years.
Policy Challenges
After years of implementation, the neighborhood policy has faced a lot of criticism. Some scholars argue that the EU’s actions in its eastern neighbourhood are constrained by self-centred interests and values, which make the role of “partner” insignificant. In addition, the close ties between the EU and Mediterranean countries also caused controversy during the Arab Spring.
Critics point out that the EU's decision-making process in the implementation of the neighborhood policy is often top-down, which is contrary to the partnership of free cooperation.
In the future, as the global political and economic environment changes, the EU's neighborhood policy needs to seek new directions and methods to adapt to the needs and challenges of neighboring countries. This is not just a question of aid and funding, but also about how to build a long-term partnership that truly benefits all parties.
In the face of the constant changes in globalization and geopolitics, how to adjust neighboring policies to further enhance relations and promote stability and development is a question worth exploring in depth in the future?
