Transition to a greener and more inclusive economy The Sector Reform and Performance Contract (SRPC) on `Transition to a greener and more inclusive economy¿, intends to support the implementation of the priorities of Dominican Republic¿s sector policies related to public finance management &amp; business climate (including green public finance management -PFM-), micro, small and medium sized enterprises ¿MSME- development and clean production practices / circular economy of MSMEs, in line with sectoral policies declined in the main planning document of the current government, which is the National Multi Year Plan of the Public Sector (PNPSP 2021-2024). This SRPC contributes to the Team Europe Initiative (TEI) on Green and sustainable transition in the Dominican Republic.The overall objective of the action is to contribute to a greener, sustainable and inclusive economic transition in the Dominican Republic by supporting the implementation of the related priorities of the PNPSP. &nbsp;Its specific objectives are:- To develop the business environment and competitiveness of MSMEs, improving sustainable/green production practices, with special attention to women and youth, and with a territorial approach.¿ To strengthen the sustainable management of public finances, which allocate the resources according to the priorities of national development and conducive to equitable distribution of national income, including transition to green PFM and PFM at local level.The action takes into account: (i) the strategic objectives of the EU-DR relationship (as enshrined in the MIP) and strong demand from the government; (ii) the political and socio-economic context; (iii) the priorities established in the national sector policies and their declination in the multiannual plan 2021-24 (PNPSP); (iv) the added value of past EU-DR cooperation and the fields of expertise of the EU and a trust relationship built with key line ministries; and (v) a focused approach as a prerequisite for effectiveness in light of limited financial means.Through this action, the EU will support the DR policies that promote a greener, more sustainable and inclusive economic model with a main focus on priorities 1 and 3 of the MIP and interlinkages with priority area 2.This action also includes complementary support with technical assistance and capacity development to achieve objectives and outcomes of this action. The technical assistance would support the key stakeholders in strategic areas relevant for PNPSP management and implementation of economic recovery policies focused on promoting SMEs competitiveness of the PNPSP.