Countries in development that support Russia or Iran could lose EU aid, and European companies could benefit from preferential treatment in future tenders, said Kaja Kallas, the EU’s foreign policy chief, on Monday.
Speaking ahead of a meeting of EU development ministers in Brussels, Kallas stated that the Union needed to take a more strategic approach in how it finances foreign aid, in a time of increased geopolitical rivalry and conflicts.
“If a partner supports Russia or Iran, they must show flexibility so that we can adjust our engagement in that case,” she said.
Kallas did not specify how this new flexibility would be integrated into the policy.
“It’s a very delicate balance… it’s not about removing everything, but also keeping in mind that Europe has interests,” she added.
“If we have projects aimed at supporting countries, and in reality, this benefits our competitors, then we also need to consider how we can address that.”
These remarks come as EU leaders are working on the future of the bloc’s geopolitical investment strategy, the €300 billion Global Gateway, within the next EU budget cycle. Controversy has arisen over a €320 million EU-backed project in Senegal, seemingly set to be awarded to a company linked to the Chinese government, already found guilty of breaching the bloc’s rules on foreign subsidies.
Jozef Sákela, EU Commissioner for Development, stated that European preference should be integrated into future EU development aid. “In a world where investments, infrastructure, and supply chains have become instruments of power, foreign policy cannot afford to be sentimental,” he said on Monday.
European MPs have warned against tying EU aid to EU companies, putting European competitiveness ahead of poverty eradication.
Maxime Prévot, Belgian Minister of Foreign Affairs, cautioned that the EU should not withdraw aid from developing countries at a time when the United States was reducing their aid.
“Europe must not leave a void […] in which case others will step in with an even more transactional approach,” he emphasized.
