As the EU prepares to significantly scale up its deployment of blended finance, guarantees, and other risk-sharing tools aimed at stimulating investment in developing countries, it has stated its intention to use its development budget to incentivise private investment in health and education.
CGD Policy Blogs
Three weeks ago, the European Commission published its initial proposal for the EU’s budget from 2021 to 2027. The headlines? Overall spending would rise despite the loss of the UK, and development spending and ‘external action’ could see increases. But both agriculture and regional spending would be cut. This blog post is the first in a series analyzing the Commission’s proposals for its “long-term budget” and looks specifically at the agriculture budget and its global development impact.
Development Cooperation Has Emerged a Winner in the EU’s 2021-2027 Budget Proposal, but the Odds Are Stacked against It
The long-awaited European Commission Communication on the Multiannual Financial Framework (MFF) 2021-2027—the EU’s long-term budget—has been unveiled, and so begins the EU’s big battle over money and priorities. Brace yourselves for a long arduous struggle that will expose divisions in the bloc in all sorts of ways—payers vs. recipients, east vs. west, north vs. south, federalists vs. intergovernmentalists, values vs interests. This is also the review that will shape the future of EU development cooperation and the credibility of the EU as a major player in the international development sphere. Does the Commission’s proposal live up to the challenge?