After 3 years of reflection, from ‘Wieser report’ to ‘independent feasibility study’, the European financial architecture for development will not be subject to revolutionary reform: this was agreed at the last meeting of the EU Finance Ministers (see EUROPE 12701/15, 12699/14) and is confirmed in a draft conclusion of the EU Council.
Seen by EUROPE, this 21 April draft makes coordination its watchword and the ‘Team Europe’ approach the recipe for increased efficiency, ahead of a policy debate of the European Development Ministers, scheduled for 29 April by videoconference (see EUROPE 12705/20).
This ‘Team Europe’ approach—which collectively mobilises the EU, its Member States, their diplomatic networks, the EIB, and the EBRD—is intended by the Council of the EU to be an important part of the EU’s foreign policy and the instrument of a globalised approach to health and post-Covid-19 ‘green and sustainable’ recovery (see EUROPE 12703/13).
In the draft conclusions, the EU Council welcomes the strong convergence of Member States in favour of strengthening and improving the current institutional structure.
It highlights the urgency of the development challenges, reinforced by the Covid-19 pandemic, and the importance of the ‘build back better and greener’ approach advocated by the World Economic Forum, the UN, and the EU. It also stresses the importance of rapid implementation on the ground, targeting investments where they are most needed, including in least developed and fragile countries, in Africa, in neighbouring countries, and in other regions.
The text stresses the need to make the system more efficient, coherent and visible, based on an open and collaborative architecture, working with all relevant financial institutions, drawing on their respective country, sectoral, or financial expertise and resources, and maintaining a level playing field to attract private investment.
It recalls the 2019 EU Council conclusions on strengthening the European financial architecture for development (see EUROPE 12346/5) and the political agreement reached on the Neighbourhood, Development and International Cooperation Instrument (NDICI)—‘Global Europe’ for 2021-2027, which includes the European Fund for Sustainable Development Plus (EFSD+).
The draft stresses the importance of increased political guidance from the EU Council and coordination by the Commission and the European External Action Service in the implementation of EU development policy, highlighting the role of the NDICI—‘Global Europe’ EFSD+—strategy board in maximising development impact and contributing to the strengthening of the global development finance architecture and multilateral efforts.
The EIB and EBRD should work together more effectively and efficiently and build on their complementarities while strengthening their cooperation with European development finance institutions (EDFIs) through a ‘Team Europe’ approach, the text says.
In this respect, it notes that the NDICI fund programming exercise is a key moment to ensure a better division of labour and to make optimal use of available funds to increase investment volumes and development impact.
The EIB and the EBRD are invited to continue to systematically deepen their coordination, both at the strategic and technical levels, and to report to the EU Council by November 2021.
The EIB should further improve the development impact of its operations in partner countries by ensuring specific and inclusive governance with EU development policy makers, strengthening its presence in EU delegations and deepening partnerships to strengthen the collective capacity of EDFIs.
The EBRD should optimise its business model to take greater advantage of private investment, in particular with a view to expanding its operations in the least developed countries and in fragile and conflict-affected countries, and continue co-operation with the EDFIs. (Original version in French by Aminata Niang)