EU to boost investment in global role with 30% budget increase for external action

For the next long-term EU budget 2021-2027, the European Commission is proposing to increase the external action budget to €123 billion, to significantly simplify its structure, and make it much more flexible and effective to address today’s global challenges.

The external action budget will be the EU’s main tool to support its partner countries in their political and economic transformations towards sustainable development, stability, consolidation of democracy, socio-economic development and the eradication of poverty. It will also allow the EU to continue to provide humanitarian assistance all over the world. As regards the EU’s neighbourhood, this will also be the tool to help the neighbourhood countries in their economic approximation to the EU’s Single Market.

EU High Representative Federica Mogherini said: “We propose a budget for the external action of the European Union of €123 billion for the next seven years: an increase of 30% that is an unprecedented investment in our global role. More resources for more action as a reliable, predictable, cooperative global player – exactly what our citizens and our partners expect in these troubled times. It is recognition of the added value of the EU work on foreign policy. Together we can have an impact that no Member State alone can have in today’s world.”

Commissioner for European Neighbourhood Policy and Enlargement Negotiations, Johannes Hahn, highlighted: “The increased and reformed budget will allow us to continue working with those countries that are engaged to join the EU, as well as maintaining our special relationship with our Eastern and Southern neighbours. This will support our strategic goal to achieve a space of stability, security, and prosperity close to the EU’s borders.”

Commissioner for International Cooperation and Development Neven Mimica added: “The EU is a key promoter of the UN 2030 Agenda and its Sustainable Development Goals. Our proposals set out the financial basis for the EU to maintain its role as the leading development actor, assisting our partners to eradicate poverty and respond to global challenges while ensuring we leave no one behind.”

Commissioner for Humanitarian Aid and Crisis Management Christos Stylianides said: “As humanitarian emergencies in the world are increasing every year and becoming more complex, the EU is reinforcing its leading role as a major humanitarian aid provider. With an increased budget, we will continue showing solidarity with millions of people in need.”

Key elements of the new external budget proposal:

• Increased funding: The funding will increase from €94.5 billion in the period 2014-2020 to €123 billion from 2021-2027, up by 30%.
• Simplification: The Commission proposes to reduce the number of instruments, as well as to integrate the European Development Fund into the EU budget. This will allow for more coherence and a clearer focus on political objectives and engagements with partners, in line with the EU’s values and priorities.
• Flexibility: The new budget structure will allow the use and re-use of unutilized funds on a multi-annual basis. This will enable the EU to better respond to changing circumstances in line with its priorities of eradicating poverty, promoting sustainable development, prosperity, peace and stability.
• Increased transparency and democratic scrutiny: for example by incorporating the European Development Fund in the EU budget.

Original source: EC
Published on 14 June 2018