Economy
The ENP aims to improve economic and social conditions in the EU partner countries by way of sound political, social and economic systems developments. As a result of economic integration with the EU, neighbourhood countries are able to more successfully implement national reform programmes and economic development policies.
The ENP approach foresees enhanced preferential trade relations and increased financial and technical assistance. It offers neighbouring countries the prospect of a share in the EU internal market and the participation in a number of EU programmes, as well as improved interconnection and physical links with the EU.
Direct economic benefits result in the reduction of tariff and non-tariff barriers to trade, which provides efficiency gains and improves welfare through increased market integration. Indirectly, the ENP brings neighbouring countries closer to the EU economic model through the implementation of international best practices and the proposed extension of the internal market. This can improve the investment climate in partner countries and bring about a more transparent, stable and enabling environment for growth in the private sector.
These economic benefits spill over into various fields of socioeconomic development, including issues surrounding employment, social policy and structural reforms. Specifically, the ENP aims to foster dialogues which:
- reduce poverty,
- create employment,
- promote core labour standards and social dialogue,
- reduce regional disparities,
- improve working conditions,
- enhance the effectiveness of social assistance and
- reform national welfare systems.
