Casablanca – The partnership between European Union and Morocco entered a new phase in 2025 and is expected to strengthen further in 2026, supported by expanded financial commitments, strategic investments, and closer political coordination. Officials from the EU Delegation in Rabat and the European Investment Bank confirmed that cooperation now spans economic development, infrastructure modernization, social protection, renewable energy, and regional stability.

According to Dimiter Tzantchev, Morocco remains one of the European Union’s most important partners in its southern neighborhood. He emphasized that the relationship is built on decades of institutional dialogue, shared economic interests, and common priorities related to sustainable development, energy security, and regional cooperation.

Direct financial support exceeds $365 million in one year

Financial data presented during the latest EU–Morocco partnership review showed that direct EU financial disbursements reached approximately $365.61 million in 2025 alone. Of this amount, about $357.32 million was allocated to development programs and institutional reform projects, while $8.29 million supported civil society initiatives.

In addition to direct disbursements, the European Union committed $247.50 million in new funding during the year. This included $193.05 million for development programs, $1.65 million for civil society support, and $52.80 million under the EU’s investment platform designed to finance large-scale infrastructure and economic development projects.

The overall volume of active EU-funded programs in Morocco reached approximately $1.90 billion across 153 ongoing initiatives. These include national budget support programs valued at about $1.33 billion, making them the backbone of Morocco’s institutional reform efforts and long-term economic modernization.

The European Union is also financing 68 development projects worth $203.39 million, along with 54 grants totaling $55.08 million to strengthen civil society organizations. Additional infrastructure investments worth $309.42 million are being implemented through specialized regional investment platforms.

European Investment Bank commits record $814 million

The European Investment Bank significantly expanded its role in Morocco in 2025, announcing new financing commitments totaling approximately $814 million. This represents the highest annual level of EIB financing in Morocco in more than a decade and reflects the growing importance of European financial support in strengthening the Kingdom’s economic resilience.

These investments build on $550 million provided in 2024 and focus on strategic sectors such as renewable energy, water infrastructure, transportation systems, and private sector development. A substantial portion of the funding is directed toward supporting small and medium-sized enterprises, which account for a large share of employment and economic activity in Morocco.

Infrastructure reconstruction is another major priority. About $1.1 billion has been mobilized to rebuild public infrastructure, including schools, hospitals, and transportation networks, particularly in regions affected by natural disasters. In addition, $77 million has been allocated to strengthen water supply systems and improve long-term water security.

Technical and financial cooperation reaches $360.82 million

Total technical and financial cooperation between the European Union and Morocco reached approximately $360.82 million in 2025. These funds supported key national reforms and strategic sectors, including social protection, agriculture, education, and energy transition.

Social protection programs received $30.10 million in support to help expand health coverage, improve social assistance delivery, and strengthen digital access to public services. Sustainable agriculture initiatives were supported with approximately $88.45 million to improve climate resilience, water efficiency, and food security.

The European Union has also invested heavily in vocational training and research programs aimed at strengthening workforce skills and improving employment opportunities, particularly for young people entering the labor market.

Trade relations reach record $66.91 billion

Economic ties between Morocco and the European Union continue to expand. Bilateral trade reached approximately $66.91 billion in 2024, representing a fivefold increase since the EU–Morocco Association Agreement entered into force in 2000.

The European Union remains Morocco’s largest trading partner, accounting for more than two-thirds of Moroccan exports and over half of its imports. This strong trade relationship has contributed to Morocco’s industrial growth, increased foreign investment, and deeper integration into global supply chains.

Key sectors benefiting from this cooperation include automotive manufacturing, aerospace, renewable energy, agriculture, and infrastructure development.

Strategic cooperation expands beyond economic development

Beyond financial and economic cooperation, Morocco plays a key strategic role in the European Union’s regional policies. Both sides cooperate closely on migration management, counterterrorism, climate action, and energy security.

The European Union also reaffirmed its support for Morocco’s autonomy initiative as a credible and realistic basis for resolving the regional dispute over the Moroccan Sahara, in line with United Nations-led diplomatic efforts.

Morocco’s role as a regional partner extends beyond North Africa, serving as a bridge for European cooperation with African countries. Joint initiatives focus on promoting sustainable development, strengthening regional stability, and improving economic integration across the continent.

Focus on green transition and sustainable development

Environmental sustainability has become a central pillar of EU–Morocco cooperation. European investments are supporting Morocco’s transition toward renewable energy, modernization of its electricity market, and development of climate-resilient infrastructure.

These efforts are aligned with Morocco’s long-term goal of increasing renewable energy capacity, reducing carbon emissions, and strengthening environmental sustainability.

In addition, new programs under the EU’s Global Gateway initiative and Mediterranean cooperation frameworks are expected to accelerate investments in clean energy, transportation, digital infrastructure, and economic modernization.

Outlook for 2026 and beyond

The year 2026 marks the 30th anniversary of the EU–Morocco partnership agreement, highlighting the depth and durability of the relationship. Both sides have expressed strong commitment to expanding cooperation in strategic sectors and increasing financial support for development and infrastructure projects.

Future priorities include strengthening employment opportunities, improving vocational training systems, supporting entrepreneurship, and accelerating Morocco’s green transition.

With record financing levels, expanding trade, and deepening political cooperation, the EU–Morocco partnership is expected to remain a central pillar of Morocco’s economic growth and regional stability in the coming years.