EU Plans to Allocate Over €1.5 Billion to Armenia

The European Union is set to allocate over €1.5 billion to Armenia over the next five years for five key programs, including the development of the Syunik region. The document was presented today in Brussels, highlighting initiatives the European Commission intends to implement in Eastern Partnership countries by 2025.

In terms of Armenia, the European Commission plans to: 1. Support 30,000 micro and small businesses for a sustainable, innovative, and competitive economy; 2. Promote socio-economic development and connectivity by supporting the North-South corridor; 3. Invest in information technology, science, and engineering sectors; 4. Strengthen the resilience of southern regions; 5. Allocate funds for a green Yerevan, focusing on energy efficiency and the operation of environmentally friendly buses.

The first outlined program aims to provide €500 million in support to representatives of small and medium-sized businesses. "Economic recovery post-pandemic is a priority for Armenia," notes the European Commission, stressing that by helping Armenian entrepreneurs, the EU will contribute to new job creation, business development, and modernization, ultimately facilitating Armenia's sustainable socio-economic recovery.

In this context, the priority will be given to entrepreneurs working with nature-preserving technologies, especially in rural areas, as well as businesses led by women.

The second program highlights support for Armenia's socio-economic development and connectivity, stating that a priority of the national agenda is the operation of the North-South corridor, which will provide access to international trade routes and markets. "Improving transport infrastructure will strengthen connections between regions and enhance Armenia's ties with neighboring countries and the EU," states the European Commission, adding that the EU's investment will focus on the remaining unconstructed sections of the North-South highway, including the Sisian-Kajaran road. A budget of €600 million is planned for this program, which will also fund the construction of a new tunnel in Sisian-Kajaran in the south.

The third program aims to support innovation and science. "Armenia has significant information potential, with the sector recording nearly 20 percent growth in recent years. However, additional support is needed to unlock its full capacity," says the European Commission's report, detailing, "The EU has previously supported e-governance, but now new investments are needed to expand these services to regional and local levels. In total, an investment of up to €300 million is planned for this purpose."

The fourth direction focuses on strengthening the resilience of Armenia's southern regions. "Especially the Syunik region is in need of support," the report notes, pointing out that the region has long faced issues due to underdeveloped infrastructure, which has recently been compounded by the impacts of war and displaced persons from conflict zones who are in need of housing, jobs, and education. "Based on the examples from northern regions and local needs, the EU will invest in strengthening the socio-economic sustainable development of Syunik. Priority sectors may include housing construction, infrastructure, tourism, agriculture, education, health care, renewable energy sources, and support for local micro and small businesses." For this purpose, support of €80 million is planned.

The last fifth direction concerns the capital, specifically green Yerevan. "To improve people's quality of life and enhance air quality in Yerevan, it is necessary to address waste management and energy efficiency issues," states the European Commission's report, adding that the EU is ready to invest in the implementation of a "smart city" package. In this context, support is also planned for the import of "green buses," which will cause less harm to the city’s environment and improve and modernize public transport. Various projects aimed at improving quality of life, including waste management and recycling in Yerevan, are also on the agenda. In total, up to €120 million will be allocated for the implementation of these goals.

The document simultaneously emphasizes that when the opportunity arises, the EU is also ready to support post-war recovery and conflict transformation in the South Caucasus, including the demining of war-affected areas, socio-economic development, peacebuilding, and reconciliation. In addition to Armenia, the European Commission has outlined similar programs for other Eastern Partnership countries: Georgia, Azerbaijan, Moldova, and Ukraine. These programs are expected to be discussed at the upcoming summit of EU leaders and Eastern Partnership members in December.

"We want to shape an agenda that responds to today's unprecedented challenges and opportunities while remaining viable for the future," stated EU High Representative for External Affairs Josep Borrell, adding, "The support for democracy, good governance, and the rule of law remains at the core of all our initiatives, which are essential for recording positive, tangible results in our cooperation."