Azerbaijan: Just Boxticking
Azerbaijan: Just Boxticking

Author(s): Konrad Zasztowt
Subject(s): Supranational / Global Economy, Economic policy, Government/Political systems, International relations/trade, Economic development, Fiscal Politics / Budgeting, Geopolitics
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: Azerbaijan; European Union; budget support; financial resources; financial aid; financing reforms; EU assistance;
Summary/Abstract: This section presents how budget support has been used in Azerbaijan. The EU has planned relatively modest financial resources for Azerbaijan in the scope of budget support. This is not only due to the fact that it is the wealthiest country in the EaP region and can finance its own ongoing reforms but also because of its limited absorption capacity and the execution of the “more for more” rule. Azerbaijan has oil and gas reserves that provide significant revenue to the budget and it has a relatively stable economy. This, unlike other EaP countries, implies no great interest on the government’s behalf for financial assistance from the EU. Moreover, contractual relations with the EU are not as dense as, for instance, with Georgia or Moldova. Azerbaijan does not aim to integrate economically with the EU, therefore the scope of potential legal approximation is limited. In the years 2007–2013, four operations took place of the overall planned amount of €60 million (which is almost half of all EU assistance planned in Azerbaijan in this period), while only one operation in energy was finalised.

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