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EU Donor Profile

Last updated: March 2017

KEY QUESTIONS

the big six

How will the EU's ODA develop?

  • The EU has concluded its multiannual programming for the 2014-2020 period, and sector priorities and allocations are set within the multiannual financing framework (MFF). The projected budget for official development assistance (ODA) for 2016 (including the EDF, DCI, and EIB loans) is €14.4 billion and for 2017 €14.1 billion.
  • The refugee crisis will continue to have an impact on the EU’s ODA and on how much of the EU budget is available for global development programs. In December 2016, the EU budget for 2017 was adopted, increasing funding by €6 billion to address the consequences and root causes of the migration crisis.
  • The result of the British referendum to leave the European Union may have significant consequences on development cooperation of the EU. The UK contributes approximately US$2 billion annually to EU development programs through the EU’s general budget and the EDF. It is, however, unclear exactly how this will unfold.

What will the EU’s ODA focus on?

  • Funding for health will likely remain stable, while funding for agriculture will increase.
  • Funding for humanitarian assistance and to address the migration crisis inside and outside of the EU will remain a strong focus of EU development assistance.
  • Focus on low-income countries will increase as the EU is closing bilateral programs with 16 middle-income countries in Asia and Latin America by 2020.

What are key opportunities for shaping the EU’s development policy?

  • In 2017, the Commission will conduct mid-term reviews of the EDF, DCI, and the MFF. There will be a consultation between February and May on all the external financing instruments of the EU, to which all stakeholders will be invited to participate. According to the results of the mid-term review, the Commission might revise respective geographic and thematic allocations of the instruments.
  • The renewal of the Cotonou Agreement will formally be launched in September 2018 and may lead to changes to the EU’s relationship with African, Caribbean, and Pacific (ACP) countries. It may also carry with it the inclusion of the budget of the EDF into the EU’s general budget, which would allow the Parliament to scrutinize the EDF budget. 2017 will be a pivotal year to shape the EU’s mandate to negotiate a new agreement with the ACP , as outreach activities (with member states, European Parliament, ACP countries, and others) will run till mid-2017.
  • The European Consensus on Development underwent a public consultation in 2016, and a proposal was published by the Commission in December 2016. The Commission suggests a stronger collective European development policy and stronger alignment between the development policy of the Union and its member states with the 2030 Agenda. During the first half of 2017, the Commission’s proposal will be discussed by member states at the Council and by the European Parliament.

DEEP DIVES

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POLICY UPDATES

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  • European Parliament study shows 'Brexit' will have major consequences for EU ODA

    A study by the European Parliament takes an in-depth look at the impact ‘Brexit’ could have on the EU’s official development assistance (ODA). The study finds that the EU’s ODA could decrease by up to 3% within the current multi-annual financial framework (MFF 2014-2020) if the UK withdraws from the EU by 2019 as planned. In the longer term, a Brexit could create significant shortfalls in the EU's ODA budget within the next MFF (2021-2027). These reductions would challenge the institution's role as one of the largest global donors of development assistance.

    The Parliament's report considers that a post-Brexit UK might still continue contributing to EU assistance, giving rise to three possible scenarios: 1) a ‘cosmopolitan’ outlook, by which the UK would maintain its current ODA levels and continue to spend around half in conjunction with the EU, 2) a ‘realist’ scenario, and 3) a ‘nationalist’ scenario. Under the worst-case 'nationalist' scenario, the UK could face cuts to its ODA budget by 30%, leaving “no possibilities for UK-EU collaboration”.

    Website - Euroactiv

  • EU announces €165 million in assistance for drought-stricken parts of East Africa

    During an official visit to the African Union in Addis Ababa, Ethiopia, the EU International Cooperation and Development Commissioner, Neven Mimica, announced €165 million in additional assistance for drought-stricken parts of East Africa. €100 million will go to South Sudan, while €65 million will be divided amongst Somalia, Ethiopia, and Kenya to help prevent famine. Two-thirds of the funding to South Sudan is intended to support South Sudanese refugees in neighboring countries. The remaining third will be used to address malnutrition, diseases, and water access in the country, and to protect vulnerable people, particularly women and children, from human rights abuses. The EU’s High Representative for Foreign Affairs, Federica Mogherini, was also in attendance on the visit.

    Press release - European Commission
    Website - EurActiv

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