Policy Updates

On October 25, 2024, Commissioner for International Partnerships Jutta Urpilainen participated in the World Bank / IMF Development Committee in Washington.

During her mission, the Commissioner reinforced the EU’s global partnerships with new investments in sustainability, public finance, and education:

• The EU signed a guarantee to allow Denmark to launch the Danish Sustainable Development Goals Investment Fund II ( SDG Fund II). The target size of the fund is EUR670 million (US$741 million), including EUR72 million (US$79 million) backed by EFSD+ guarantees. The SDG Fund II will invest in green and inclusive economic growth and focus on financial services, renewable energy, infrastructure, healthcare, and sustainable food systems;
• The EU signed a EUR15 million (US$17 million) contribution to the new IMF multi-donor fund GPFP. The funds will support developing countries' fiscal capacity development;
• The EU also provided EUR8 million (US$9 million) to support the second phase of the IMF- EU Public Financial Management - Partnership Programme 2. This EU-funded program helps partner countries strengthen their spending policies and PFM systems; and
• The EU also signed the AU component of the Regional Teachers Initiative for Africa, worth US$2 million, with the AUC. It is slated to enhance teacher’s professional development, regional teacher frameworks as well as regional coordination and teacher mobility.

On October 23, 2024, the European Commissioners-designates published their written replies to the EP questions ahead of the upcoming hearings in the EP which will confirm or reject the proposed Commissioners.

The hearings will take place between November 4-12, 2024, with the Commissioner-designate for International Partnerships Jozef Sikela’s hearing scheduled for November 6, 2024.

In his written replies, Commissioner-designate for International Partnerships, has highlighted the key areas and priorities for his future mandate. He said that International Partnerships will be a cornerstone of the EU’s new foreign economic policy, with economic growth being the main engine of sustainable development. He will continue to focus on the Global Gateway as the EU’s main contribution to the 2030 Agenda, while focusing on food, health, and education in fragile and conflict contexts.

Mobilizing private investments will be key to achieving the biggest impact of EU funding. He will continue to build on the Team Europe approach as a way of coordinating the EU's limited resources and deliver on priorities as a team. The main sectors for engagement will be green energy, digital infrastructure, transport, education, and health, as investing in these areas will reduce poverty, address the root causes of irregular migration and bolster economic security.

Commissioner for Preparedness, Crisis Management, and Equality Hadja Lahbib committed to stepping up efforts to boost preparedness and response to disasters, including those linked to climate change and health. She will steer the development and implementation of an ambitious EU Preparedness Union Strategy. In her role as a Commissioner for Equality, she will develop the Gender Equality Strategy post-2025.

Commissioner-designate for Budget Piotr Serafin called for the EC to be an ‘Investment Commission’, with a more efficient and impactful financial architecture for the Union, and a more focused, simpler, and impactful budget. He supported strengthened and modernized revenues, including via new own resources.

Commissioner for Startups, Research and Innovation Ekaterina Zaharieva will prioritize the development of the next Framework Program for Research and Innovation, as well as work to increase research spending and support the target of investing 3% GDP in R&D. She stressed the importance of bridging research and innovation ecosystems to address global challenges, while pursuing reciprocity, a global level-playing field, and Europe’s strategic autonomy and economic security.

On October 8, 2024, the EU took stock of the progress achieved on its international partnerships since it revamped its model of cooperation five years ago.

The EU's intentions have been to move away from donor-recipient dynamics and towards more mutually beneficial partnerships where both the partners' and Europe's resilience are reinforced. An integral part of this shift is Team Europe, which brings together the EU institutions, the Member States, the European DFIs with the European private sector, aiming to increase the scale, impact, and visibility of joint European action.

This approach has been the main delivery mechanism of the EU's Global Gateway investment strategy, which is expected to mobilize up to EUR300 billion (US$331 billion) in public and private investments by the year 2027. Between 2021-2023, EUR179 billion (US$197 billion) in investments have been already mobilized. EUR50 billion (US$55 billion) of these funds were supported by the EC.

Commissioner for International Partnerships Jutta Urpilainen positively reflected strong foundation of partnerships that were built during her mandate.

The communications highlighted achievements in the five priorities of the Global Gateway strategy:

• Climate and Energy: Mobilizing investments for climate resilience, access to clean energy and infrastructure, helping partner countries shift away from fossil fuels, supporting climate adaptation, supporting global food security, and creating opportunities for jobs and prosperity;
• Digital Transition: Supporting digital transition and deployment of connectivity and digital infrastructures, as well as digital skills. Additionally, allocating 10% of NDICI funding to digital actions;
• Transport: Investing in physical infrastructure to strengthen transport networks, as well as strengthening the regulatory environment;
• Health: Supporting the global fight against the COVID-19 pandemic (via ACT-A and COVAX, supporting global health initiatives like Gavi, the Vaccine Alliance, the Global Fund to fight Tuberculosis and Malaria and the Pandemic Fund. Adopting a Global Health Strategy, strengthening health systems, supply chains, investing in local manufacturing; and
• Education and Research: Investing 13% of the development budget (2021-23) to education. Flagship initiatives focus on education for girls, teacher training, and vocational education.

Additionally, it underscored work on:

• Fragile countries: Addressing the root causes of fragility and supporting the basic needs and livelihoods of populations, along the Humanitarian-Development-Peace nexus. Launching an Integrated Approach to External Conflicts and Crises to see how to best approach fragile and conflict-affected contexts;
• Migration: Scaling up work to address root causes of migration by investing in partner countries’ migration management capabilities and signing migration partnerships in line with the Pact on Migration and Asylum. 10% of the international partnerships budget was earmarked for migration and forced displacement; and
• Multilateral engagement: Engaging with global institutions like the UN, the G7 and G20, and International Financial Institutions to shape global policies; and providing funding for international initiatives on global health, education, and equality.

On September 17, 2024, after months of negotiations, EC President Ursula von der Leyen unveiled her proposed team of Commissioners.

Pending a confirmation hearing by the European Parliament in November, where experts believe some Commissioner-designates are likely to be rejected, and a plenary vote, the new college will be able to begin the new mandate at the earliest in December 2024.

Six Commissioners will have an external component to their portfolio, five will have an ecological focus, and five relate to security in their title.

Among the most relevant for external relations are:

• Jozef Síkela (Czechia, independent): Commissioner for International Partnerships. Síkela is a former investment banker and industry and trade minister. Síkela has been mandated with continuing to focus on Global Gateway. His mission letter tasks him with taking Global Gateway from start-up to scale-up and working in synergy with other programs, namely to secure supply of raw materials and clean tech. Gender equality is singled out as a priority, but no mention of other human development sectors is made.
• Kaja Kallas (Estonia, liberal): High Representative for Foreign and Security Policy. Former Estonian Prime Minister Kallas has been one of the EU's most vocal critics of Russia and a key proponent of both military assistance to Ukraine and a stronger EU defense capability. Her duties include giving a new impetus to the EU’s partnership with Africa and shaping a new foreign economic policy, including via "mutually beneficial partnerships". Kallas has also been tasked to ensure a better link between the EU’s internal and external policies, from climate and energy to digital and food security.
• Hadja Lahbib (Belgium, liberal): Commissioner for Preparedness and Crisis Management, Equality. Labhib is the outgoing Belgian Foreign Affairs Minister and was previously a journalist. The role replaces the current portfolio of humanitarian assistance, covering internal crises as well, and includes a second hat for equality. Her health deliverables include developing a new strategy to support medical countermeasures against health threats. Lahbib will work to develop a Roadmap for Women’s Rights and a new Gender Equality Strategy.

The agreement of the next EU long-term budget will be front and center of the next mandate. Von der Leyen’s priorities are modernization, prioritization, and simplification.

The appointment for the budget is:

• Piotr Serafin (Poland, center-right): Commissioner for Budget, Anti-Fraud, and Administration. Serafin, currently the Polish ambassador to the EU and former chief of staff of Donald Tusk when he was European Council president, also served in the cabinet of former Polish EU Budget Commissioner Janusz Lewandowski. Serafin will report directly to President von der Leyen. His mission letter calls for revamped external action financing that is more targeted and aligned with Europe’s strategic interests.

Among the most relevant for climate, food, and agriculture are:

• Teresa Ribera Rodríguez (Spain, center-left): Executive Vice-President for Clean, Just and Competitive Transition. As the Spanish Vice President and Minister for Ecological Transition, her position combines the roles of competition chief, net-zero architect, and economic transformer. Former Italian Prime Minister Mario Draghi’s report on competitiveness is expected to serve as her blueprint as she leads the development of a Clean Industrial Deal and ensures the European Green Deal stays on track.
• Wopke Hoekstra (the Netherlands, center-right): Commissioner for Climate, Net Zero and Clean Growth. Hoekstra has been confirmed in the role with a revamped portfolio that now includes climate and taxation. He will focus on a clean industrial strategy, decarbonization and emissions reduction, while ensuring a fair transition. The international dimension will center on clean trade and investment partnerships.
• Christophe Hansen (Luxembourg, center-right): Commissioner for Agriculture and Food. As an MEP, Hansen worked on environmental and trade issues. His new role will involve strengthening the competitiveness, resilience, and sustainability of agriculture, and he will prepare a 100-day Vision for Agriculture and Food.

The appointments for health and preparedness are:

• Roxana Mînzatu (Romania, center-left): Executive Vice-President for People, Skills, and Preparedness. Minzatu is a cohesion funds expert who served as an MEP and Minister for European Funds. Her mission statement includes advancing a Union of Equality, a Union of Skills, and fostering a new culture of preparedness to help people adapt to changes and risks, particularly in the face of health and security crises.
• Olivér Várhelyi (Hungary, far right): Commissioner for Health and Animal Welfare. Várhelyi, who is currently responsible for the Neighborhood and Enlargement portfolio, was handed the health and animal welfare role. He is a controversial figure due to breaking ranks with the EC to follow Hungarian Prime Minister Viktor Orbán. His mission statement includes completing the European Health Union, but food safety has been stripped of his portfolio. He will head DG SANTE and HERA. On health preparedness, he will report to the Executive Vice-President for People, Skills, and Preparedness.

In her mission statement, von der Leyen states that R&I, science, and technology must be put at the heart of the EU’s economy, which entails more investments and cooperation.

The appointment for R&I and R&D is:

• Ekaterina Zaharieva (Bulgaria, center-right): Commissioner for Startups, Research, and Innovation. Zaharieva is a lawyer and previously served as Bulgaria's foreign affairs minister after serving several other ministerial posts. Her deliverables include reinforcing international research and innovation cooperation and seeking synergies through Global Gateway. Zaharieva's revamped portfolio does not include education, which will be the responsibility of the Executive Vice President for people, skills, and preparedness, but extends to start-ups, a first for any commissioner.

On June 27, 2024, the Strategic Agenda 2024-2029, which emphasized the EU's commitment to peace, cooperation, and economic prosperity amid a reshaping of the global political landscape marked by strategic competition and instability, was adopted by the European Council.

The EU outlined the following priorities:

• Bolster Europe’s economic competitiveness, including deepening the Single Market in strategic sectors like energy, finance, and telecommunications;
• Strengthen security and defense capabilities within the EU;
• Reinforce EU sovereignty and unity to address strategic competition, climate change, technological advancements, and global instability;
• Strengthen external influence by supporting Ukraine in defending its sovereignty, promoting stability in its neighborhood and beyond, fostering strategic partnerships, and coordinating internal and external policies to address global challenges effectively;
• Uphold human dignity, freedom, democracy, equality, and human rights, while safeguarding the rule of law and enhancing democratic resilience;
• Invest in defense readiness, supporting Ukraine, combating crime, and addressing cyber threats, while enhancing cooperation with NATO and other partners;
• Ensure the proper functioning of the Schengen area, addressing irregular migration, and promoting legal pathways;
• Support the international legal order, promoting peace, democracy, and sustainable development, and reforming the multilateral system;
• Boost economic growth, supporting social welfare systems, investing in skills and education, and reducing disparities across the EU; and
• Pursue a merit-based approach to EU enlargement, supporting aspiring members, and undertaking necessary internal reforms.

On June 24, 2024, it was announced that EU Commissioner for International Partnerships Jutta Urpilainen was appointed Chair of the GEM Report Advisory Board, succeeding David Moinina Sengeh.

Urpilainen's appointment underscored her commitment to education, a priority during her tenure as EU Commissioner. Under her leadership, the International Partnerships budget allocation for education showed a significant increase of approximately 13% during 2021-2023.

Urpilainen noted her plans to leverage her experience to support the GEM Report’s strategy, emphasizing impactful global education investments. Her role will include leading the annual Advisory Board meetings in Paris and advocating for the GEM Report's initiatives as well as UN SDG #4 by prioritizing outputs to support international efforts in enhancing educational policies.

The Advisory Board, comprising 35 members from diverse sectors, is slated to finalize a new five-year strategy at an upcoming meeting chaired by Urpilainen.

On June 20, 2024, the EIB approved EUR12.8 billion (US$13.7 billion) in financing to improve sustainable transport, increase the use of renewable energy, build new student housing, improve earthquake and flood protection, and help business expansion.

EUR2.9 billion (US$3.1 billion) will be allocated for urban development, education, health, and water projects. EUR2.1 billion (US$2.2 billion) is slated to support corporate innovation, with a focus on female entrepreneurs in Africa and the Caribbean, as well as business financing in Ukraine.

EIB President Nadia Calviño highlighted that support will go to global and regional flagship projects and that the investments will improve quality of life and reflect the EIB's commitment to strengthen European resilience, productivity growth, and innovation.

On June 11, 2024, the EIB announced that it will provide Ukraine with a EUR100 million (US$107 million) loan to rebuild municipal infrastructure damaged by the war against Russia.

These funds, agreed at the Ukraine Recovery Conference in Berlin, will be used to rebuild schools, kindergartens, hospitals, social housing and local transport, in addition to ensuring essential services such as clean water and sanitation.

Calls for project proposals are set to be issued, inviting communities to submit applications for the reconstruction of health facilities, housing, education, water sector and shelters. The projects will prioritize liberated territories, areas close to conflict zones, and regions with large numbers of internally displaced persons.

On May 31, 2024, the European Commission approved a second allocation of EUR25 million (US$27 million) to the Palestinian Authority, and granted EUR16 million (US$17 million) to UNRWA to provide basic services, such as health and education, to Palestinian refugees.

The funds allocated to the Palestinian Authority, as part of the PEGASE program, is intended to help the Palestinian Authority meet its commitments to pay salaries and pensions to civil servants in the West Bank. The payment is the second tranche of the EUR118 million (US$126 million) development assistance package approved in December 2023.

The European Commission authorized the EUR16 million (US$17 million) to UNRWA after assessing progress towards reform recommendations. The disbursement brings the total EU ODA to UNRWA in 2024 to EUR66 million (US$70 million), out of a total projected EUR82 million (US$88 million) for the year.

On May 23-25, 2024, the G7 Ministers of Finance met at a summit in Stresa, Italy, where the ministers voiced support for contributions to the IDA, WHO, Gavi, and the Global Fund in the resulting communiqué.

The G7 ministers supported efforts towards a successful 21^st replenishment of the IDA by the end of 2024 through an ambitious policy and financing package. Notably, they did not give a concrete signal that the critical US$100 billion threshold requested by the World Bank will be crossed, nor any indication of the US$120 billion expected by African leaders.

The ministers reaffirmed their dedication to strengthening the governance and finance of the global health architecture and voiced support for refinancing processes of several GHIs, such as Gavi, the Vaccine Alliance, the WHO, and the Global Fund, and expressed support for the Pandemic Fund. The communiqué called on the donor community to coordinate efforts and increase investments in global health in line with their capacities to ensure sustainable funding and maximize the impact of available resources.

Following the summit, the C7 pointed out the G7's lack of ambition and financial commitment to international development, including climate adaptation. International civil society organizations criticized the lack of any reference to allocating SDRs to global solidarity.