Policy Updates

On July 18, 2024, the European Parliament endorsed Ursula von der Leyen for a second term as President of the European Commission through a secret ballot, where she received 401 votes, 41 votes above the 361 votes needed for a qualified majority.

Von der Leyen received 289 votes against, 15 abstentions, and 7 votes were invalid. The secret ballot suggests von der Leyen managed to garner support from a coalition of pro-European, democratic groups across the center-left and right. Experts noted that this could indicate that a centrist coalition is possible, though future policy decisions will need to be built on a case-by-case basis amidst ongoing polarization.

During the debate that preceded the vote, von der Leyen outlined her political priorities for the next five years. The main proposals related to EU global engagement included appointing a Commissioner for Enlargement and one for the Mediterranean, developing a new economic foreign policy through the Global Gateway, and focusing on strategic partnerships, particularly with Africa ahead of the EU-Africa Summit in 2025.

Von der Leyen emphasized the need for the EU to remain a leader in international climate negotiations and proposed new initiatives, such as a European Climate Adaptation Plan and a Clean Industrial Deal. Her agenda included a focus on security and defense, with plans to create a European Defense Union, appoint a new Commissioner for Defense, as well as developing a new European Migration and Asylum strategy and a Pact for the Mediterranean. Von der Leyen's focus on health has decreased since the pandemic, with a focus mainly on a Critical Medicines Act, an action plan for hospital cybersecurity, and a strategy to support medical countermeasures through HERA.

The focus of the EU's new seven-year budget will be on simplicity, flexibility, speed, and strategic priorities. It will streamline funding allocation, moving away from a program-based budget to a policy-based one. External action financing is expected to further align with EU interests. Von der Leyen also highlighted support for the introduction of new EU resources.

Von der Leyen's proposals reflected the current geopolitical landscape and internal EU dynamics, focusing on strengthening the Union’s resilience and strategic interests. Her agenda also proposed a significant increase in research and innovation spending, the establishment of new roles, such as a Commissioner for Equality and a Commissioner for Intergenerational Fairness, the set-up of a new European Competitiveness Fund, and policies addressing housing, youth, and agriculture.

On July 17, 2024, the European Commission approved a payment of nearly EUR4.2 billion (US$4.5 billion) to Ukraine under the EU's Ukraine Facility, aimed at supporting the country's macro-financial stability and public administration functions.

This disbursement, pending Council approval, will bring the total EU funding to Ukraine to EUR12 billion (US$12.8 billion) since the Facility's inception in March 2024. The payment reflects Ukraine's compliance with pre-set conditions designed to ensure consistent financial assistance.

This financial support is part of a broader EU commitment to provide up to EUR50 billion (US$53.5 billion) in grants and loans through 2027, ensuring Ukraine's stability and progress amidst adversity.

On July 16, 2024, Roberta Metsola was re-elected as the President of the European Parliament for a second two and half year mandate.

Metsola garnered 562 votes, well above the qualified majority threshold of 312 votes required. Metsola's opponent, Irene Montero from Spain, representing he Left, won 61 votes. Although her candidacy was largely symbolic, Montero highlighted critical issues such as social rights and combating the far-right's growing influence, advocating for progressive values and social justice.

Born in Malta in 1979, Roberta Metsola has been an MEP since 2013. She was elected First Vice-President in November 2020, and was Parliament’s acting President after President David Sassoli passed away in 2022.

Metsola pledged to maintain strong leadership. She addressed various issues, including enhancing border efforts and implementing humane migration policies. Metsola also stressed the need to boost Europe's industry by reducing bureaucratic red tape and underscored the importance of protecting civil liberties and women's rights across the bloc.

On July 3, 2024, the EU DG INTPA published the first Inequality Marker results, which revealed that, in 2023, 59% of all new projects funded from the International Partnerships budget had a substantial focus on reducing inequality.

The Inequality Marker, launched in June 2023, tracks and benchmarks contributions to inequality reduction, promoting a multidimensional approach to development.

A detailed breakdown of the results showed a strong emphasis on inequality reduction across different income categories and regions. In LICs, 77% of new projects had a significant or primary focus on inequality reduction, compared to 70% in LMICs and 69% in UMICs. Regionally, 76% of projects in Sub-Saharan Africa, 61% in Latin America and the Caribbean, and 59% in Asia and the Pacific aimed to reduce inequality.

EU Commissioner for International Partnerships Jutta Urpilainen noted that addressing social and economic inequality is crucial for strengthening social cohesion and resilience. She emphasized the importance of the Inequality Marker as an innovative tool for measuring the impact of development interventions.

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 27, 2024, the European Council reached an agreement on the suggested names for the top three EU positions, with the notable renomination of European Commission President Ursula von der Leyen.

Von der Leyen ( EPP, Germany) must secure the European Parliament's support and win at least 361 votes on July 18, 2024, to secure her position.

Antonio Costa ( S&D, Portugal) will replace Charles Michel as European Council President on December 1, 2024.

Kaja Kallas (Renew, Estonia) was nominated for the role of High Representative for Foreign Affairs and Security Policy as well as Vice-President of the European Commission, pending the European Parliament’s autumn 2024 approval.

Roberta Metsola ( EPP, Malta) is expected to be re-elected as European Parliament President for a second 2.5-year mandate. The vote will take place at the first European Parliament plenary on July 16, 2024.

On June 24, 2024, the Council of the EU adopted conclusions on the midterm evaluation of the NDICI-Global Europe instrument, based on the European Commission's May 2024 report on the evaluation of the EU's External Financing Instruments for the MFFs of 2014-2020 and 2021-2027.

The Council stated that the NDICI-Global Europe instrument was fit for purpose and met its objectives. It highlighted that the instrument addressed the fragmentation of the previous financial structure, improving the clarity, effectiveness, and transparency of EU support and cooperation with its partner countries. It also underlined the instrument’s significance in relation to the EU’s geopolitical role.

The Council stressed that the effective implementation of NDICI-Global Europe faces a number of challenges, such as ensuring coherence between internal and external policies, enhancing synergy between country, regional, and thematic programs, and addressing shortcomings of the incentive-based approach.

Critical areas for improvement included:

• Crisis response with long-term development;
• Increasing the impact of the EFSD+ through expedited contracting and efficient budgetary guarantees; and
• Bolstering local ownership and participation among communities and civil society to make the implementation more inclusive and effective.

On June 24, 2024, the Council of the EU approved conclusions on the 2024 annual report on EU ODA targets.

The report showed that in 2023, EU collective ODA reached EUR95.9 billion (US$102.8 billion), up from EUR93.3 billion (US$100 billion) in 2022. However, ODA/GNI decreased to 0.57% in 2023, falling from 0.59% in 2022.

EU collective ODA to LDCs decreased from EUR16.5 billion (US$17.7 billion) in 2021 to EUR15.3 billion (US$US$16.4 billion) in 2021. It fell from 0.11% ODA/GNI in 2021 to 0.10% in 2022.

The EU and its Member States still remained the largest global provider of ODA in 2023.

The Council stressed the urgency for the EU and Member States to take further steps to reach the collective commitment of 0.7% ODA/GNI and to allocate 0.2% of ODA to low-income countries by 2030.

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.