In the second of a two-part brief, Philippe Van Damme outlines a vision for a more coherent, flexible and impactful EU budget for external action under the 2028-2034 MFF. He proposes a three-layered model that prioritises poverty reduction, strategic partnerships and swift crisis response – ensuring the EU remains a credible and principled global actor.
Summary
As the European Union (EU) prepares its multiannual financial framework (MFF) for 2028-2034, it aims to create a more impactful and flexible budget, particularly for external actions.
The primary objective of the EU’s development cooperation remains the reduction of poverty. This can be ensured by the consistent application of the graduation and differentiation principles, allowing for the concentration of grant-based programmable development aid in those partner countries most in need and committed to pro-poor policies. The EU’s broader external policy priorities can then be promoted through various types of public diplomacy as well as through demand-driven global facilities.
A ‘mutually beneficial partnership’ requires the integration of both those objectives in one single – further simplified and more flexible – new instrument that ensures the necessary complementarity and coherence between the various external actions. This brief proposes a three-layered approach to achieving this goal: firstly, preserving and increasing humanitarian and emergency aid as unconditional support; secondly, protecting programmable grants for fragile and reform-oriented partners; and thirdly, expanding demand-driven global facilities to advance the EU’s strategic interests through blended finance and guarantees. Increased reserves must provide the necessary capacity to respond swiftly to crises and new needs, while clear reallocation decision-making processes must guarantee the appropriate political steer and democratic accountability.
This model concentrates scarce grant funding where it is most needed and most impactful while using investment tools to build strategic partnerships. Such a rationalised structure would enhance the EU’s international credibility, ensuring the use of its limited resources preserves its image as an effective but principled global actor.
About the Author
Philippe Van Damme is a distinguished diplomat who has served as the European Union Ambassador to several countries, including Guinea (Conakry), Zimbabwe, Cameroon, and Equatorial Guinea. In his diplomatic career, Van Damme focused on fostering strong relations between the EU and these countries, addressing various political, economic, and social issues.