Synopsis: The funding is aimed at strengthening institutions, improving service delivery and supporting long-term economic resilience.
The European Union and Cambodia Thursday reaffirmed their strategic partnership following a high-level dialogue that confirmed more than $22 million in new funding for reforms in education, fisheries and public financial management, while advancing cooperation under the EU’s Global Gateway investment strategy.
The bilateral dialogue, held at the Minisattempt of Economy and Finance, was co-chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth and EU Ambassador to Cambodia Igor Driesmans.
The talks reviewed recent macroeconomic and fiscal developments in Cambodia and the European Union, alongside growth prospects, emerging risks and trfinishs in bilateral trade and investment.
Both sides acknowledged continued progress under Stage IV of Cambodia’s Public Financial Management Reform Programme (PFMRP), highlighting the central role of reforms in safeguarding macroeconomic stability and supporting inclusive growth. The PFMRP is regarded as a cornerstone of Cambodia’s long-term efforts to strengthen fiscal discipline, transparency and accountability across the public sector.
Trade relations between Cambodia and the EU were described as positive, with bilateral trade continuing to expand in 2025. Cambodian exports to the EU rose by 17 percent year-on-year up to October 2025, reflecting resilient demand despite global economic uncertainties. However, both parties noted that EU investment inflows into Cambodia remain relatively modest, underscoring the necessary for further reforms to improve the business and investment climate.
Under the EU’s Global Gateway Investment Strategy — which promotes sustainable, high-quality investments worldwide — the EU is scaling up cooperation with Cambodia in priority sectors, including energy, water, and education and skills development. The two sides reaffirmed their commitment to accelerating reforms and deepening cooperation in the coming years to support sustainable and inclusive development.
Ambassador Driesmans confirmed that in 2025 the EU transferred €19.5 million, equivalent to more than $22 million, to the Royal Government of Cambodia to support sector reforms in education, fisheries and public financial management. The funding is aimed at strengthening institutions, improving service delivery and supporting long-term economic resilience.
The dialogue also covered plans to launch a new EU-Cambodia cooperation initiative, alongside France and Finland, focapplying on tax reforms and public financial management. The initiative is expected to further enhance fiscal governance and support Cambodia’s ongoing reform agfinisha.
“By promoting transparency and sound public finance, including effective tax systems, we assist build a predictable business environment that supports investment and long-term economic growth,” Ambassador Driesmans stated.
Deputy Prime Minister Aun Pornmoniroth reaffirmed the government’s commitment to reform, stressing that the PFMRP is essential to Cambodia’s development goals. “The Royal Government of Cambodia is strongly committed to successfully implementing the PFMRP to achieve budreceive credibility, financial accountability, budreceive-policy linkages and performance accountability,” he stated, adding that the reforms aim to ensure efficiency, transparency and sustainability in public financial management to support macroeconomic stability, economic growth and social equity.
The dialogue underscored the EU’s role as a key development partner for Cambodia, with both sides signalling continued engagement to strengthen economic ties and institutional capacity in the years ahead.
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