Bhutan and the European Union (EU) have reaffirmed their commitment to strengthening economic cooperation, with a renewed focus on investment, trade partnerships, and private sector engagement during the Europe Day celebration in Thimphu. The event marked more than four decades of diplomatic relations between Bhutan and the EU and was attended by Prime Minister Tshering Tobgay, cabinet ministers, diplomats, and development partners.
EU Ambassador to India and Bhutan, Hervé Delphin, said the partnership is gradually shifting from traditional development assistance towards an investment-driven model based on shared values and mutual trust. He noted that Bhutan’s successful implementation of EU-supported projects has increased confidence among European investors and entrepreneurs.
The discussions highlighted Bhutan’s growing economic potential in sectors such as agriculture, renewable energy, information technology, wellness industries, and digital transformation. Special attention was also given to the Gelephu Mindfulness City (GMC) project, which has generated significant interest among European businesses. However, Ambassador Delphin clarified that investment discussions on GMC remain at an early stage.
The EU is currently facilitating connections between European investors and Bhutanese businesses through investment forums held in Brussels, Frankfurt, and Prague earlier this year. Agriculture remains another major area of collaboration, with the EU supporting Bhutan in developing premium, high-value agricultural products and stronger value chains for international markets.
The EU-Bhutan Multiannual Indicative Programme 2021–2027, worth EUR 48 million, will further support climate action, green growth, governance, education, and digital transformation initiatives in Bhutan.
