[{"bbox": [158, 153, 1073, 231], "category": "Text", "text": "The present action seeks to commit the remaining EUR 4.7 million available under the MIP. It shall take over from the ongoing EUR 2 million support measures decision (CRIS number 2021/043-619; OPSYS reference ACT-60669)."}, {"bbox": [158, 244, 1073, 322], "category": "Text", "text": "The Overall Objective is to contribute to a stronger and more effective EU-Peru partnership, enhancing the impact of the interventions in eradicating extreme poverty and promoting both joint and EU areas of interest."}, {"bbox": [158, 337, 444, 364], "category": "Text", "text": "The Specific Objectives are to:"}, {"bbox": [162, 369, 1073, 450], "category": "List-item", "text": "- Support the effective and efficient implementation of EU international cooperation actions and policies, in particular those prioritised by the MIP 2021-2027 and in the corresponding TEI and improve synergies and coherence with other EU actions."}, {"bbox": [162, 456, 1073, 509], "category": "List-item", "text": "- Support policy dialogues and engagement with government and other stakeholders, including in areas of mainly EU interest as trade and investment, public health and others."}, {"bbox": [162, 515, 1073, 596], "category": "List-item", "text": "- Strengthen strategic communication and public diplomacy, including visibility actions on EU cooperation and public diplomacy specific interventions to promote EU policies as well as its multilateral agenda in the partner country."}, {"bbox": [158, 608, 1028, 635], "category": "Text", "text": "The overall budget of the Action is EUR 4.7 million, to be implemented in direct management."}, {"bbox": [146, 675, 384, 707], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [146, 741, 296, 769], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [158, 787, 1073, 892], "category": "Text", "text": "Peru's recent economic growth has been remarkable and public finances are solid however growth did not translate into productivity gains. There are persistently significant geographic inequalities, as rural poverty, at 45.7%, is almost double the rate of urban poverty (26%) (IDB Country Strategy Peru)."}, {"bbox": [158, 905, 1073, 1063], "category": "Text", "text": "The COVID-19 pandemic struck Peru particularly hard, reversed the situation and resulted in high excess mortality as social services like health, education and social protection, central and local authorities were quickly overwhelmed. A large social and digital divide persists with dire impact on economic and social development. The difficulties to sustain the positive trends in social indicators, which have not reached their pre-pandemic values, point to the need for continued policy reforms and a more ambitious decentralisation reform."}, {"bbox": [158, 1078, 1073, 1264], "category": "Text", "text": "During the last five years, political fragility has increased significantly as Peru went through five presidents and repeated changes of Cabinet, layering political crises on top of the COVID-19 crisis putting in peril the country's capacity to design and implement public policies. In December 2022, after an attempt to dissolve Congress by then president Pedro Castillo and his confinement, Vice President Dina Boluarte swore to lead the transitional Government, becoming Peru's first female Head of State. The political scenario led to nationwide protests breaking out and a national state of emergency was declared."}, {"bbox": [158, 1276, 1073, 1356], "category": "Text", "text": "Despite this, the economy, oriented towards the export of commodities, remains solid. With record agrifood exports, the trade balance is positive. The macroeconomic situation also remains stable. Public debt is low, although its rating has been recently revised downwards to BBB outlook negative."}, {"bbox": [158, 1368, 1073, 1474], "category": "Text", "text": "The debate of Peru graduating from international cooperation is off the table. Indeed, the indicative financial allocation of the EU Multi-annual Indicative Programme (MIP) 2021-2027 is set to increase in comparison to the previous period. At the same time, the OECD and Peru opened accession negotiations."}, {"bbox": [158, 1486, 1073, 1538], "category": "Text", "text": "The Peru MIP acts in this context. It identified several areas of both EU and Peru interest, not least climate action, environmental conservation and sustainable trade."}, {"bbox": [976, 1680, 1082, 1705], "category": "Page-footer", "text": "Page 4 of 13"}]