Ms Jane-Ann McKenna:

I will start and my colleagues might then contribute. I thank the committee for the invitation to meet with it today to brief it on the work of Dóchas and the role of the EU and EU funding in international development.

Over the past few years, humanitarian needs and extreme poverty have escalated worldwide. A convergence of multiple crises, including rising inequality, escalating conflicts and the intensifying impact of climate change, combined with the volatile international political situation, have further exacerbated dire situations, with millions at risk of starvation and of death by preventable disease. More than 300 million people are in need of humanitarian assistance and protection and a record 120 million-plus are displaced. This escalation of human suffering and need has been met with a retreat of support, with many global donors announcing cuts to their overseas development assistance, ODA. The US dealt a severe blow at the start of 2025 with the dismantling of USAID. This came on top of 14 out of the top 20 humanitarian donors cutting their aid in 2024, and resulted in the loss of $61 billion in development and humanitarian assistance. Sadly, other countries are following suit, with the OECD predicting a net reduction of up to 17% in global ODA on top of the 9% drop witnessed in 2024. The impact of these cuts is beginning to reveal itself, and a recent report by The Lancet estimates that 14 million avoidable deaths are likely as a result of US aid cuts by 2030. The figures are truly staggering.

Today, we will focus on the trends and risks that development and humanitarian organisations see in the European Union's strategy and policy development. This is particularly timely as the EU seeks to commence negotiations on the next multi-annual financial framework, MFF, with the Commission’s proposal being released as we speak. The EU, as the largest global donor, has a critical role to play in ensuring that its ODA remains a powerful tool for poverty reduction, sustainable development and addressing global inequalities. These objectives are clearly stated in the Lisbon treaty, which is legally binding and further backed up in the EU consensus on development, the EU consensus on humanitarian aid and Global Europe, or the neighbourhood, development and international co-operation instrument, NDICI. However, when it comes to external action, there has been a considerable shift in the direction of EU policies affecting development programmes, including funding cuts to existing programmes, and a move towards a more transactional approach, which we find extremely concerning. The current MFF leaves humanitarian assistance perpetually stretched thin. The looming threat that all directorate general, DG, budgets will be cut to allow a greater allocation to EU defence spending is an obvious and growing point of concern for the development and humanitarian community. Aid budgets are needed now more than ever and need to be protected.

Under the next MFF, member states must safeguard international co-operation instruments that are working well. Any refinements should ensure that the EU’s aid remains focused on addressing poverty reduction and inequality. Human development, including investment in health, education, nutrition and social protection, must stay at the heart of EU co-operation. The EU must prioritise people, ensuring that life-saving assistance, guided by the principles of humanity, impartiality, neutrality and independence, remains paramount. The next MFF must significantly increase funding for humanitarian assistance and safeguard the integrity of the EU’s humanitarian response. The new MFF and the future EU external financing instruments, EFIs, must offer the legal framework and strategic tools to advance sustainable development, human rights and climate action. These instruments should also ensure alignment with the EU’s commitments to transparency, accountability and inclusive partnerships.

In this rapidly changing environment, Ireland has remained steadfast, maintaining a principled stance underpinned by our values of peace, and a commitment to principled humanitarian aid, equality and justice. The role of development co-operation and humanitarian assistance as an expression of Ireland’s values and solidarity on the global stage has never been more important. In the context of increasing inequality and human development needs, we call on the EU institutions, and all member states - including Ireland - to work towards meeting the 0.7% GNI target for ODA. We strongly believe that our values must be matched by our commitments and by our ability to deliver them. We take this opportunity to ask that Ireland leads by example and upholds its commitment to increase our ODA in budget 2026, as outlined in the programme for Government.

I am joined here by Ms. Celia Cranfield, head of advocacy at CONCORD Europe, and Mr. Dominic Crowley, CEO of Concern Worldwide and former president of VOICE. They will illustrate why separate, external action instruments for international co-operation and humanitarian action are necessary and offer recommendations in regard to the EU’s approach to fragile and conflict-affected states.