Luxembourg's development cooperation - Annual report 2018

Looking towards the next EU multiannual financial framework covering the 2021 to 2027 period, the Commission has proposed an overall budget of 1.135 billion euros, which corresponds to 1,1 % of GNI of the EU-27³.

In order to meet its commitments on the international stage as well as meeting current and future challenges connected with the EU’s external action (EU neighbourhood, development cooperation, humanitarian action, migration, etc.), the Commission proposes to create a single instrument that will combine into one the various current instruments, such as the European Development Fund, the, European Development Cooperation Instrument, the European Neighbourhood Instrument, the European Instrument for Democracy and Human Rights, the Instrument contributing to Stability and Peace, the Partnership Instrument, European External Investment Plan, the European Fund for Sustainable Development and the ACP Investment Facility, among others, in order to simplify the current architecture, enhance transparency and increase the Commission’s flexibility. Thus, the Commission’s proposal specifies the creation of an instrument called “Neighbourhood and world” with a budget of 89,2 billion euros. According to the Commission, this budget “will offer more flexibility in responsiveness and a wider range of options for actions to better serve the Union’s priorities. This will also include a “emerging challenges and priorities cushion” to allow for flexibility in response to existing or emerging urgent priorities, notably in the areas of stability and migration.”

The negotiations on this new instrument began under the Austrian Presidency. Minister Romain Schneider emphasised several times that, particularly in Africa, financing of development assistance must be maintained or even extended in order to reflect our ambitions. In this context, he emphasised that the budgets proposed, for example for sub-Saharan Africa and the thematic programmes, are inadequate to respond to the priority given to the African continent to create the conditions likely to attract private investments or to enhance good governance, institutional capacities, the rule of law, respect for human rights and the role of civil society in the EU’s partner countries. In this context, Luxembourg is hoping that the new instrument does not in various ways compromise development and poverty eradication efforts. Furthermore, the arrangements for the governance of the instrument must also be carefully evaluated.