Alexei Jones, Pauline Veron, Amandine Sabourin and Karim Karaki call for a strategic overhaul of the EU’s external financing instruments ahead of the 2028-2034 budget cycle. They argue that without stronger strategic steering and institutional coherence, a more consolidated architecture could dilute the EU’s ability to act with purpose and impact.
Summary
The EU is entering a pivotal phase for rethinking its external financing architecture, as preparations begin for the next Multiannual Financial Framework (2028–2034). In light of shifting geopolitical dynamics and evolving internal priorities, this paper argues for a reform agenda that goes beyond regulatory adjustments to address strategic, institutional and implementation challenges at the heart of EU external action. This includes clarifying the overarching strategic framework and strengthening the steering of the instrument, refining its institutional setup and governance mechanisms, improving implementation and programming processes, and defining a financial framework that effectively balances development and investment needs.
While the current NDICI framework made important strides in streamlining instruments, it now risks being overstretched by competing demands. Further consolidation must serve, not drive, the EU’s external action. Without stronger strategic steering and institutional coherence, a more consolidated architecture could dilute the EU’s ability to act with purpose and impact.
Ultimately, the future instrument must support the EU’s ambition to be a more effective and respected global actor. It must advance the EU’s strategic interests while promoting mutually beneficial partnerships that reflect the priorities and aspirations of partner countries.
About the Authors
Alexei Jones is the head of ECDPM’s European foreign and development policy team.
Pauline Veron is a policy analyst working in ECDPM’s European foreign and development policy, migration and mobility and peace, security and resilience teams.
Amandine Sabourin is a policy analyst in ECDPM’s European foreign and development policy team.
Karim Karaki is the head of ECDPM’s economic recovery and transformation team.