EU development aid money must focus on results

​The European Commission’s i proposal to merge several external action programmes into a new broad EU i development aid instrument is expected to simplify the legislative framework, reduce red tape, and provide for a more flexible response to unforeseen challenges and crises, according to a new opinion by the European Court of Auditors i (ECA). However, this should not be at the expense of accountability, and the entire instrument should be focused on results, say the auditors.

The Neighbourhood, Development and International Cooperation Instrument (NDICI) will come into existence in 2021, with proposed funding of €89.2 billion over the EU’s next seven-year financial period. It will merge within the EU budget a dozen existing external action instruments and programmes. In particular, it will incorporate the EU’s largest external action instrument, the European Development Fund (EDF), which is currently managed outside the EU budget and provides development aid to African, Caribbean and Pacific countries and overseas countries and territories amounting to €30.5 billion for the 2014-2020 period. The NDICI will include different forms of funding such as grants, budget support, trust funds, budgetary guarantees, blending and debt relief.

“The Commission’s ambitious proposal for the new external actions instrument goes in the right direction and reduces gaps and overlaps,” said Hannu Takkula, the Member of the ECA responsible for the opinion. “Bringing the European Development Fund into the EU budget will improve democratic oversight of EU development aid by the European Parliament, which will gain budgetary and legislative power over the fund.”