Today, European Commissioner for International Partnerships Jozef Síkela welcomed the Prime Minister of Bhutan Tshering Tobgay at European Commission headquarters to celebrate the 40th anniversary of EU-Bhutan partnership and further develop the mutual cooperation. On this occasion, the Commissioner announced the allocation of an additional €17 million support package to Bhutan. It will be used to bolster Bhutan's good governance and digital transition, ensuring inclusive sustainable development.
Commissioner Síkela said: "Bhutan is one of only seven countries to have successfully graduated from the list of Least Developed Countries, achieving Middle-Income Country status in 2023. This remarkable achievement opens new opportunities to deepen our partnership and collaborate on projects that promote sustainable and inclusive development. Together, we have the potential to contribute to a greener, more prosperous future for Bhutan, building on 40 years of strong cooperation. We are proud to support Bhutan in this effort."
The €17 million package brings total EU support to Bhutan to €48 million between 2021 and 2027. For the past four years, the EU-Bhutan cooperation focused on improving agri-food systems and good governance, supporting Bhutan in diversifying its economy and strengthening local governance. The new funding for the next three years will further contribute to Bhutan's progress in good governance, digitalisation, and public finance management.
Global Gateway brings new opportunities for the EU-Bhutan partnership to achieve common goals, mobilising sustainable investments, particularly in green energy and climate action – an area where Bhutan sets a global example. For instance, the EU together with the European Investment Bank signed a €150 million renewable energy loan with Bhutan in 2024, to fund solar and mini-hydro projects in the country.
Background
Global Gateway is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.
The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
