ABSTRACT
This chapter provides an overview of the European Neighbourhood Policy (ENP) major financial instruments and their objectives as the underpinnings of enabling the financing of projects aimed at economic, social and humanitarian development in the European Union's (EU) neighbourhood. It demonstrates both benefits and shortcomings of the ENP's financial instruments. The chapter shows that the advantage of these instruments is their continuous evolution in response to the emerging needs of the EU's neighbouring countries since the 1990s. It examines the financial instruments that provide the largest funding, namely the European Neighbourhood and Partnership Instrument and the European Neighbourhood Instrument, and their predecessors. Structured cooperation between the Commission and the Commonwealth of Independent States (CIS) under Technical Assistance to CIS, and the creation of financial instruments targeting specific regions, created the potential for a more tailor-made approach to the financing of individual projects.
