Iraq

EU and Iraq

The European Union remains fully committed to supporting Iraq, its people, communities and institutions. The EU's strategic priorities in Iraq focus on advancing stability, diversifying the economy, creating jobs, and reconstructing the social contract between citizens and institutions. These goals are underpinned by efforts to ensure continuous improvements in democratic processes and governance, enhance the environment for business and investment, promote sustainable employment, and develop robust human capital.

Signed in 2012 and ratified in 2018, the EU-Iraq Partnership and Cooperation Agreement (PCA) provides for a comprehensive framework to strengthen bilateral relations. It entails four sub-committees: trade, energy, human rights, development cooperation, in addition to a dialogue on migration. The 4th Cooperation Council took place in October 2025.

Bilateral cooperation

To facilitate the achievement of these objectives, the EU is implementing a Multiannual Indicative Programme (MIP) for Iraq, allocating €165 million for 2021-2027, funded through the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI-GE). Iraq also benefits from various regional and thematic EU programmes.
The MIP contains several priorities:

Job creation and economic diversification

This priority focuses on creating jobs via private sector development, improving the enabling environment for investment, and formalising the labour market to address the underlying factors of fragility and migration. This has also generated viable job perspectives for young people and displaced communities. The Team Europe Initiative TAEUFIQ (Team Europe for Iraq; echoing the Arabic term for success) coordinates the efforts of the EU and its Member States, including Germany, France, Italy, the Netherlands, Finland, and Sweden. This initiative focuses on improving access to finance and supporting business development.

TAEUFIQ backs the emerging efforts to diversify the economy of an oil rentier state. It continues the EU's proven approach to agriculture and value-chain development, alongside efforts boost investments.

Human development and social contract

This priority focuses on developing the human capital required for sustainable growth. It boosts education, skills training, and Technical and Vocational Education and Training (TVET), and integrates displaced populations into national education frameworks. It also seeks to bolster the social contract by continuing to enhance social safety nets, which are crucial for mitigating poverty and social unrest thereby building resilience against future crises.

Digital participatory governance and democracy

This priority aims at strengthening national institutions and addressing endemic corruption to improve the management of national resources. It also helps build capacities for effective migration management and find lasting solutions for displaced populations, thereby contributing to reconciliation, stabilisation, and peace-building efforts.

Migration

The Multiannual Indicative Programme for Iraq is further complemented by the Regional Indicative Programme, which focuses on migration and connectivity. Further, the EU has committed €225 million for the response to the Syrian crisis in Iraq.

In Iraq, migration-related programmes are two-pronged: tackling migration governance as well as root causes of migration/fragility/displacement. They are framed within national systems approaches and country-wide programmes to strengthen overall Iraqi capacities linked to migration management. This means that they benefit all refugees, internally-displaced persons, and returnees. These programmes allow for their reintegration in their communities of origin and/or resettlement elsewhere, inter alia through the strengthening of Iraqi migration systems as well as through the support of education, TVET, job creation or social protection. 

Additionally, Iraq also benefits from thematic programmes on Human Rights and Democracy, Civil Society, and Peace Stability and Conflict Prevention.

Iraq also hosts a Global Gateway flagship programme.The reconstruction of cultural heritage in historical urban centres“Revive the Spirit of Mosul” is dedicated to the rehabilitation of buildings and public infrastructure within the historic quarters of Mosul and Basrah. It focuses on the revival of cultural and creative industries by supporting Small and Medium Enterprises (SMEs), which in turn facilitates skills development, job creation, and livelihood enhancements for the local community, especially among the youth. Additionally, the programme offers technical training on heritage site reconstruction, delivered through Iraqi training centres, and provides broad support to the TVET sector.