On Monday 26 January, the Cyprus Presidency of the Council of the EU and the European Parliament reached a provisional political agreement on amendments to the regulation establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI), aimed at increasing the efficiency and effectiveness of the External Action Guarantee (see EUROPE 13650/15). This guarantee, which can be endowed with up to €53.4 billion, is the EU’s main instrument for supporting investment outside the EU.
The agreement reached should enable more efficient use of resources by allocating surpluses from the former ESDF guarantee to the financing of the ESDF+ budget guarantee, thereby increasing the overall guarantee capacity under the current multiannual financial framework, according to the EU Council.
Risk coverage will be optimised, with more efficient use of the EU guarantee under the European Investment Bank’s dedicated investment window, enabling more projects to be supported.
Implementing partners will find their work simplified, with a streamlined framework for blended finance and guarantee operations, including lighter reporting requirements to facilitate faster and more predictable project implementation and to mobilise large-scale private investment.
The amendments introduce safeguards and consistency with the principles and objectives of the NDICI, including differentiated approaches for fragile contexts and least developed countries, as well as consistency with the EU’s external action objectives under the Treaties.
The agreement must now be approved by the EU Council and the European Parliament. (Original version in French by Camille-Cerise Gessant)