Within the parameters of the EU Strategy for Iraq and the EU-Iraq Partnership and Cooperation Arrangement (PCA), the key strategic interests of the EU in Iraq are to preserve security and stability, to diversify the economy and create jobs, and to rebuild the social contract between citizens and institutions. Ensuring sustained improvements in democratic processes and governance, enhancing the business and investment enabling environment, fostering fair and sustainable employment opportunities and building a solid human capital are all areas of strategic relevance in achieving these goals.  

Thus, the general premise of EU development support is to support Iraq in the better use of its own resources. This is accomplished through technical cooperation in the areas of 1) economic development and job creation, 2) human and social capital, 3) participatory governance and democratisation, as well as through continued support for 4) recovery. EU development efforts build on reinforced strategic policy dialogue and the transfer of knowledge, while concentrating assistance in support of human and social aspects of economic development and recovery. This is helping Iraq to consolidate stabilisation gains and kick-start recovery.