A major step was taken in Brussels on 1 December towards the formal creation of the European Fund for Sustainable Development (EFSD) – the EU's new instrument aimed at promoting investment in Africa and in the EU's neighbouring countries in order to stem the flows of migrants from these countries to the EU.
The member states' ambassadors to the EU reached an agreement on Thursday morning on a compromise text from the Slovak Presidency of the Council about the proposal for a regulation on the creation of the EFSD and on the establishment of the guarantee, as well as the Guarantee Fund. The text agreed will be adopted without debate at the next meeting of the EU Council, in the form of a general approach (agreement in principle), with the value of a negotiation mandate with the European Parliament, a diplomatic source told EUROPE.
The objective is to reach swift agreement in first reading on the EFSD – the creation of which was proposed by the Commission last September. "The EFSD aims in particular at tackling the root causes of irregular migration by creating job opportunities, encouraging investments and facilitating sustainable development in partner countries. It is a vital instrument", said Peter Javrocik, Slovakia's permanent representative to the EU, who is delighted with this progress that respects the target date of the end of the year set by the European Council for reaching an agreement. The negotiations with the European Parliament are expected to start next year, Javrocik added.
The EFSD is the first pillar of the European External Investment Plan which, with an initial budget of €3.35 billion, should enable some €44 billion in investment to be raised by 2020 in the African countries of the ACP (Africa, Caribbean and Pacific) Group with which the EU has concluded partnerships on migration, and in neighbouring countries (Lebanon and Jordan). The two other pillars are technical assistance and thematic development cooperation programmes, combined with structured political dialogue to improve the investment environment in the countries concerned.
Through a mix of existing public and private funds (such as the European Development Fund for the ACP countries), the EFSD is aimed at stimulating investment that can contribute to sustainable and inclusive growth, job creation and the universal sustainable development goals.
At least 20% of its resources should be allocated to investment in the areas of sustainable energy and the fight against climate change. The EFSD will be managed by the European Commission in cooperation with the European Investment Bank (EIB). It will be for the Commission and EIB to agree on the conditions for their cooperation.
The EFSD Guarantee, which is aimed at lifting the obstacles to private investment, would reportedly be for a maximum of €1.5 billion. However, all the figures in the draft text are provisional. The member states are awaiting the end of the ongoing review of the multi-annual financial perspectives before further discussion. (Original version in French by Aminata Niang)