Ms Celia Cranfield:

In an increasingly complex global landscape, a well-funded external action budget with a dedicated instrument for international co-operation is necessary.

It is important that EU ODA is directed towards least developed countries and fragile and conflict-affected states. Cutting ODA now will not strengthen Europe’s position. Retreating from commitments to multilateralism and global co-operation risks undermining trust in the EU and its credibility as a partner. At a time of increasing conflict, threatening both security and stability, the EU needs to show its reliability as a partner for sustainable development. This is the moment for the EU to step up its international development by setting ambitious, clear and sustainable targets that prioritise those who need aid most and that ensure no one is left behind.

The EU is prioritising its competitiveness and defence in the current geopolitical environment and strengthening its transactional approach with its partners. The risk of merging external action instruments now is that competition for the budget and too much flexibility will leave least developed countries, fragile and conflict-affected states and marginalised people and communities furthest behind. Less predictability risks weakening the EU’s commitment to longer term support for strengthening partner countries’ systems for human and sustainable development. As a result, safeguards will have to be put in place. We ask that there be clear targets in respect of the external action budget as a whole, including a high percentage that complies with the criteria to be ODA, that human development targets be increased, that the existing OECD target for least developed countries of 0.2% of GNI be achieved and that fragile contexts be prioritised in order to ensure that EU commitments remain focused, accountable and impactful.

The EU is putting more of its efforts into blended finance and investments in partner countries, with a promise of converting EU millions into billions to help cover the shortfall in financing for sustainable development. This alone cannot not work. It should be combined with an appropriate mix of modalities with a preference for grants. Thematic funding and targets across the external action budget in areas like civil society, inequality, disability, gender equality, climate and biodiversity, democracy and human rights are essential, including to address global cross-border challenges. The EU must commit to ensuring that human development remains at the heart of its external action in the next MFF.