EU State Building Contracts: early lessons from the EU's new budget support instrument for fragile states

The European Union (EU) began using State Building Contracts (SBCs) to provide budget support to fragile and conflict affected states in early 2013.  Over the next five years, the EU plans to use more than two thirds of funding under the 11th European Development Fund and over half from the Development Cooperation Instrument for 2014–2020 to assist people in fragile situations. The State Building Contract is a key instrument in the EU’s fragile states toolkit, and thus likely to increase in visibility and importance. At the same time, while most European Member States’ development agencies are gradually shifting away from the use of budget support, they continue to provide fiscal support in fragile states through the EU’s SBCs and through budget support-like instruments.

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