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A British Overseas Territory located in the Eastern Caribbean, Montserrat suffered a violent volcanic eruption in July 1995. This led to the setting up of a safety zone (in the North) and an exclusion zone in the South, the latter covering over half of its territory. Two-thirds of its 12 000 inhabitants fled. Montserrat is an open and dependent micro-economy with limited economic activity which includes mining and quarrying, construction, financial and professional services and tourism. The country relies on imports to meet domestic demand.
Under the 11th EDF, Montserrat receives €18.4 million for cooperation in the period 2014-2020. The focus of the cooperation is still subject of discussion between the Government and the EU.