EU aid policy to target fewer states and good governance

European aid to poorer countries should focus on fewer recipient states and be increasingly linked to democratic advancements, according to a forthcoming review of the EU's development policy.

The tougher criteria reflect increased strain on European budgets, booming economies in Asia and Latin America, and a shift in donor thinking following the Arab Spring.

A recent overhaul of the European Neighbourhood Policy also proposed a tightening of funding criteria, after years of EU ...