THE ROLE OF EUROPEAN UNION IN FINANCING INTERNATIONAL DEVELOPMENT USING BUDGET SUPPORT

The European Union, represented by the European Commission, is the world’s biggest aid donor. The primary objective of EU development policy is the eradication of global poverty, which includes the achievement of the Millennium Development Goals (MDGs). The current EU aid architecture builds upon a variety of approaches: from direct project or sector support to general or sector budget support provided to the recipient government. For many years, the European Commission has promoted the use of budget support as a way of delivering aid, as a modality of financing international development.