## European Union–International Monetary Fund CAPACITY DEVELOPMENT PARTNERSHIP ## Source details **Canonical URL:** [European Union–International Monetary Fund CAPACITY DEVELOPMENT PARTNERSHIP](https://www.imf.org/-/media/files/capacity-developement/partners/eu-imf-capacity-development-partnership-brochure-july-2024.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/partners/eu-imf-capacity-development-partnership-brochure-july-2024.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/partners/eu-imf-capacity-development-partnership-brochure-july-2024.pdf.json) --- ### Overview and Funding - The European Union contributed USD 396 million to IMF Capacity Development programs over the 2005–2024 period. - All-Time EU Net Contribution to IMF Capacity Development Programs (until June 2024): USD 396 million. - The partnership relies on four pillars: collect more, spend better, cooperation in Africa, and cooperation on a global scale. - The European Union provided large financial support to specific IMF trust funds and relief efforts: - Catastrophe Containment and Relief Trust: USD 202 million. - Poverty Reduction and Growth Trust: USD 103 million. - Somalia debt relief (support provided as part of partnership activities). ### Allocation of EU Funding and Delivery Channels - Distribution of EU-funded IMF capacity development activities: - Regional Capacity Development Centers: 61.9% - Thematic Funds: 16.5% - Bilateral programs: 21.6% - Regional footprint: - Support covers all IMF regional capacity development centers in Africa, and centers in the Caribbean, Central America, the Middle East, Central Asia, the Caucasus, Southeast Asia, and the Asia-Pacific. - Example center: CCAMTAC — Caucasus, Central Asia, and Mongolia Regional Technical Assistance Center. - 12 regional centers, 4 continents. ### Thematic Funds Supported by the European Union - The European Union supports 6 Thematic Funds that address global economic and financial challenges, including domestic revenue mobilization, data for decision-making, tax administration diagnostics, natural resource wealth management, and targeted support to Somalia and Southeast Europe. - Thematic funds and objectives: - Revenue Mobilization Thematic Fund: Help countries meet their development objectives by increasing domestic revenue mobilization. - Data for Decisions: Put more and better data in the hands of decision-makers, enhancing evidence-based macroeconomic policies and supporting the achievement of the SDGs. - Tax Administration Diagnostic Assessment Tool: Provide an objective assessment of the health of key components of a country’s system of tax administration to improve tax administration functions, processes, and institutions. - Managing Natural Resources Wealth: Help countries build capacity to manage their resource wealth effectively and sustainably. - Somalia Country Fund: Support Somalia’s efforts to strengthen its operating and technical capacity to make economic and financial institutions become more effective, transparent, and accountable. - Southeast Europe: Support countries in Southeast Europe in applying best international practices in public financial management, revenue administration and tax policy, and support their preparations in the EU accession process. - Funding notes: - Several funds are funded by the EU-IMF Public Financial Management Partnership Program. - Somalia Country Fund is specifically highlighted as funded by the Somalia Country Fund. - Southeast Europe program funded by the EU-IMF Public Financial Management Partnership Program and by the EU and Switzerland (joint funding referenced for related regional programs). ### Key Achievements and Success Stories - Promoting green, gender, and program-based budgeting: - Introduced tools to assess country-specific macro-fiscal impact of climate change in Kenya, Rwanda, and Uganda. - Helped Togo produce an annual green budget. - Launched gender-sensitive budgeting in Cameroon and Costa Rica. - Funded by the EU-IMF Public Financial Management Partnership Program and bilateral EU-funded programs. - Updating SDG Costing Tools and developing a climate module: - Climate-related extension of the SDG costing tools released in March 2024 enables assessment of spending needs to achieve the SDGs in the five climate action goal targets while accounting for countries’ vulnerabilities to climate-related events and natural disasters. - Funded by the EU-IMF Public Financial Management Partnership Program. - Modernizing fiscal institutions in the Western Balkans, Eastern Europe, and the Caucasus: - Secured progress in fiscal reforms in the Western Balkans and in the Eastern Partnership countries in line with the EU accession process. - Modernized tax administrations and public investment practices and assessed climate fiscal risks. - Supported by the EU-funded program for the EU’s Eastern Partnership Countries and the program for Southeast Europe jointly funded by the EU and Switzerland. - Reaching major fiscal milestones in Somalia: - Somalia secured debt relief after reaching the Heavily Indebted Poor Countries Completion Point in December 2023, enabled by reforms to strengthen government spending and revenue collection. - Supported by the Somalia Country Fund. - Making public investment more efficient to meet climate goals: - Creation of the Climate Public Investment Management Assessment (C-PIMA) to help countries leverage public investment more effectively to meet climate objectives. - The C-PIMA has been implemented in 50 countries worldwide and complements the IMF Resilience and Sustainability Trust. - Funded by the EU-IMF Public Financial Management Partnership Program. - Improving customs and revenue mobilization in Central America: - Narrowing the gap to adopt the World Trade Organization/Trade Facilitation Agreement standards and enhancing transparency in customs administrations. - Improving traceability of goods and increasing data registers to facilitate trade and reduce operational risks including corruption and customs fraud in El Salvador, Honduras, and Guatemala. - Implemented by the EU-funded Regional Technical Assistance Center for Central America, Panama, and the Dominican Republic. ### Bilateral and Analytical Support - The European Union supports dedicated bilateral and regional programs benefiting countries and regions, including large programs on public financial management and revenue administration in Africa and Eastern European countries. - Individual country support includes programs for Angola, Burundi, the Gambia, Guinea, Senegal, Sierra Leone, Togo, and Uzbekistan. - The EU funds the development of analytical tools used across IMF capacity development activities. --- _Source: https://www.imf.org/-/media/files/capacity-developement/partners/eu-imf-capacity-development-partnership-brochure-july-2024.pdf_