Casablanca – The European Union strengthened its strategic partnership with Morocco in 2025 by mobilizing substantial financial resources to support the Kingdom’s reform agenda across multiple sectors. Through direct budget support, the EU allocated the equivalent of approximately $256 million to accompany Morocco’s major national reforms, reinforcing long-standing cooperation in human development, economic growth, environmental transition, and public governance.

This financial commitment reflects both the depth and the maturity of EU–Morocco relations, which marked the 25th anniversary of their Association Agreement in 2025. It also aligns with the objectives of the EU’s new Pact for the Mediterranean, aimed at revitalizing Euro-Mediterranean cooperation through shared priorities and mutually beneficial partnerships.

Supporting social protection and human development

At the core of this cooperation lies Morocco’s social protection reform, a cornerstone of the country’s broader social state project. Through the KARAMA program, the European Union provided around $30 million in direct budget support to expand access to social assistance and mandatory health insurance. This funding has contributed to improving social inclusion, reducing socio-economic disparities, and strengthening the safety net for vulnerable populations.

The EU’s support in this area reflects a broader focus on human development, ensuring that economic growth is accompanied by social equity and improved access to essential public services.

Strengthening territorial development and regional governance

Territorial cohesion represents another major axis of EU support. Under Morocco’s advanced regionalization framework, the Rural and Mountain Areas Development Support Program received approximately $3.3 million. These resources aim to enhance local governance, support the implementation of regional development strategies, and promote sustainable economic activity in rural and mountainous regions, which often face structural challenges related to infrastructure, employment, and access to services.

This dimension of cooperation highlights the EU’s commitment to balanced territorial development and reducing regional inequalities within the Kingdom.

Investing in higher education, research, and innovation

Higher education and scientific research have also featured prominently in EU–Morocco cooperation. Through the ESRIM program, the European Union allocated roughly $24.7 million to support reforms in higher education, research, and innovation, as well as academic mobility between Morocco and Europe.

This investment is intended to strengthen human capital, improve the quality and relevance of university education, and better align graduates’ skills with labor market needs. It also aims to foster scientific collaboration and knowledge exchange between Moroccan and European institutions, reinforcing Morocco’s integration into global research and innovation networks.

Advancing the green transition and environmental sustainability

Environmental transition is a central pillar of the EU–Morocco partnership, particularly following the signing of the Green Partnership in 2022. Through the Green Land program, the European Union provided approximately $88.5 million to support Morocco’s national strategies, including “Green Generation” and “Forests of Morocco.”

These funds are designed to promote sustainable agricultural and forestry practices, enhance food security, and support job creation in rural areas. The program contributes to climate resilience, natural resource management, and the long-term sustainability of Morocco’s agricultural and environmental systems.

In parallel, the EU continued its long-standing partnership with Morocco in the field of renewable energy and energy transition. Through the Green Energy program, about $10.7 million was allocated to support the modernization of the electricity market, the establishment of certification mechanisms for sustainably sourced electricity, and the structural reform of the National Office of Electricity and Drinking Water. These measures are part of Morocco’s broader strategy to strengthen energy security, expand renewable energy capacity, and modernize its energy governance framework.

Promoting financial inclusion and inclusive economic growth

Economic inclusion and private sector development form another important dimension of EU support. Approximately $11.5 million was allocated to strengthen Morocco’s National Financial Inclusion Strategy and improve access to finance for small and medium-sized enterprises (SMEs). This funding aims to facilitate access to financial services, encourage entrepreneurship, and stimulate job creation, particularly among youth and in underserved regions.

By supporting SMEs and financial inclusion, the EU seeks to contribute to more inclusive and resilient economic growth, ensuring that development benefits are more widely shared across society.

Modernizing public administration and digital services

Public sector reform and administrative modernization have also benefited from EU support. Through the Islah program, around $7.8 million was allocated to support the digitalization of public services and the modernization of public administration. This initiative aims to improve the efficiency, transparency, and quality of public service delivery, while strengthening institutional capacity and governance.

Digital transformation in the public sector is viewed as a key driver of improved citizen services, reduced administrative burdens, and enhanced trust between citizens and institutions.

A results-based partnership framework

The EU’s financial support to Morocco is delivered through direct transfers to the state treasury in the form of grants, and is tied to the achievement of clearly defined objectives and performance indicators agreed upon with Moroccan authorities. This results-based approach ensures close monitoring of reform progress and accountability in the use of public funds, while reinforcing policy dialogue between both parties.

Beyond financial assistance, EU–Morocco cooperation is also shaped by political dialogue, investment partnerships, and strategic initiatives such as the EU’s Global Gateway strategy, which aims to mobilize sustainable and high-impact investments in energy, connectivity, education, and employment across partner countries.

A long-term strategic relationship

Through this broad and multi-sectoral support, the European Union has reaffirmed its role as a key strategic partner to Morocco, accompanying the Kingdom in its economic, social, and environmental transformations. The partnership reflects a shared vision centered on sustainable development, inclusive growth, institutional modernization, and regional stability.

As Morocco continues to pursue ambitious reforms across social protection, education, energy, and governance, the EU’s sustained engagement positions the partnership as a cornerstone of Euro-Mediterranean cooperation, with a focus on long-term impact, shared prosperity, and mutually reinforcing development objectives.