The European Union is striving to rethink how it approaches its foreign aid, with a focus on prioritizing security, migration, and its own economic interests.
“In a world where investments, infrastructure, and supply chains have become instruments of power, foreign policy cannot afford to be sentimental,” said Jozef Škela, the commissioner in charge of international partnerships, ahead of a meeting of EU development ministers.
According to the European Commission’s proposal for the 2028-2034 budget cycle, the EU would allocate around 200 billion euros to the “Global Europe” instrument for development cooperation, humanitarian aid, and neighborhood policy. The plan includes a 25 billion euro fund for rapid emergency interventions, while a separate 100 billion euro facility for Ukraine would be off-budget.
The Commission’s proposal consolidates several existing instruments into one fund and eliminates thematic spending objectives. This means that specific goals in areas such as climate or gender equality would give way to greater flexibility.
The EU’s “Global Gateway” strategy, launched in 2021 as a response to China’s Belt and Road initiative, remains central. The EU finances projects in infrastructure, energy, health, and digital at a global scale, claiming over 300 billion euros in investments mobilized.
Furthermore, Brussels is also using its funds to support European businesses and the economic interests of Europe.
Regarding securing access to critical raw materials, the head of the Commission’s development department stated, “There is obviously a link to European supplies – why else would we do it if not to ensure European flow? But the investments we bring aim at local value creation [extraction and processing of materials]. We do it in a socially and environmentally sustainable way, creating local jobs and added local value.”
Škela recently announced that a “European preference”, aiming to ensure that European companies win tenders for EU-supported projects, would be included in future EU aid – a move that has sparked mixed reactions among European lawmakers.
“There is clearly an evolution towards a more geopolitical, transactional, and interest-focused approach in the EU’s external action,” noted Alexei Jones of Euractiv, highlighting a shift from a development instrument to a geopolitical instrument with development guarantees.
Although the ambition of the proposal has been widely praised, critics warn that the new approach may sideline the EU’s traditional development model, based on needs, in favor of more transactional partnerships linked to the EU’s strategic interests.
Some groups, including the European Parliament, have called for the reinstatement of objectives regarding the share of expenses dedicated to issues like climate change, arguing that it would help strike a balance between flexibility and accountability.
EU High Representative for Foreign Affairs and Security Policy Kaja Kallas defended the EU’s new direction in external aid, stating that the Union must be “more strategic” and align its partnerships in aid, trade, and security with the needs of partners and Europe’s own interests to be a geopolitical player.
However, what the EU precisely means by strategic and mutual interests remains vague, as pointed out by Jones. “These concepts are increasingly central to EU foreign action, but often remain politically vague.”
(vc, bw)
