CSOs call for a clear development commitment in the next EU budget negotiations

The next EU budget (2021-2027) is under negotiation. In April the European Parliament confirmed its stand on the Neighbourhood, Development and International Cooperation Instrument (NDICI), which will determine EU development cooperation during this period. The Parliament’s position includes crucial provisions to ensure that the instrument is up to the task of eradicating poverty, reducing inequalities and supporting sustainable development.

Last week Eurodad and Concord sent a letter to the European Council and its Member States urging them to follow the Parliament’s direction in their negotiations of the NDICI instrument. The letter builds on a 10-point position paper that Eurodad and Concord developed last year on the European Fund for Sustainable Development plus (EFSD+), which will be an EU financial arm comprising a single worldwide blending facility and a new External Action Guarantee with a ceiling of €60 billion.

Eurodad and Concord are calling on Member States to:

  • Support capping the resources used for the EFSD+ External Action Guarantee at €10 billion within EU budget to ensure EFSD+ would not be detrimental to other actions supported by geographic programmes.
  • Oppose the significant increase in resources for blending loans, guarantees and grants going to for-profit actors. The evidence shows mixed results of these instruments in low income countries (LICs), and there is mounting evidence of failed public-private partnerships (PPPs) both in Europe and in developing countries, which refer to the clear tension between a focus on generating financial returns and delivering public services.
  • Focus the EFSD+ primarily on local economic actors and inclusive business models, such as cooperatives and social enterprises, micro, small and medium-sized enterprises (MSMEs) and the informal sector, in order to develop local markets, foster domestic competitiveness and create a private sector that is aligned to and delivers on sustainable development objectives.

Although the negotiations might be extended until early 2020, it will be important for the Council, its Members States and the new European Parliament to send clear messages on their commitment on eradicating poverty, reducing inequalities and on the EU’s contribution to achieving the Agenda 2030.

To follow the co-decision process on NDICI:

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