Brussels, Belgium. The Council of the European Union and the European Parliament have reached a provisional political agreement on targeted amendments to the NDICI–Global Europe financial instrument. The Cyprus Presidency said it was the first successful trilogue concluded under its term.
Aim of the agreement
The agreement is intended to strengthen the effectiveness of the External Action Guarantee (EAG), allowing the European Union to deploy existing resources in a more strategic and flexible way, particularly through the European Fund for Sustainable Development Plus (EFSD+), while preserving the framework’s core objectives, principles and safeguards.
Cyprus Presidency statement
According to the Cyprus Presidency of the Council of the EU, the changes are expected to simplify procedures and improve flexibility in the use of guarantees, enabling the EU to respond more swiftly and coherently to global challenges.
Comments by Foreign Minister Constantinos Kombos
Foreign Minister Constantinos Kombos said the agreement “enhances the effectiveness of the EU’s external investment instruments without changing their mandate and objectives.” He added it would “allow us to mobilise more investment where it is needed most, in full respect of the EU’s values, political objectives and fiscal safeguards.”
Kombos described the deal as “a concrete, timely and necessary step” to strengthen the EU’s capacity to deliver and reinforce its role “as a reliable and strategic global partner.”
Operational changes and project support
Under the agreement, guarantee resources will be used more efficiently, including through the use of surpluses from the previous EFSD to reinforce the EFSD+ guarantee, while risk coverage will be optimised so that EU guarantees can support a larger number of projects.
Implementing partners are expected to benefit from simplified procedures, lighter reporting requirements and faster project implementation.
Focus and next steps
The revised framework will continue to align with the principles and objectives of the NDICI–Global Europe instrument, with a particular focus on fragile states and least developed countries.
The provisional agreement requires formal approval by both the Council and the European Parliament before it can be adopted.
What impact do you think the proposed changes could have on EU-supported projects in fragile states and least developed countries?
