Study on lessons learnt from Budget Support in view of the imminent use of financing not linked to cost (FNLC) in NEAR external action

This assignment focuses on conducting a comprehensive study to analyse lessons learned from the European Commission’s use of Budget Support (BS)—a financial assistance modality where funds are transferred directly to a partner country’s treasury, linked to the achievement of agreed policy objectives. The study also examines the transition to Financing Not Linked to Cost (FNLC), a performance-based financing mechanism that ties disbursements to measurable results or specific milestones, rather than reimbursing actual expenditures. FNLC is designed to enhance the effectiveness, accountability, and transformative impact of EU funding.