The Significance is Substantial: Justifying the EU's Need for a Robust External Financial Plan
The Significance is Substantial: Justifying the EU's Need for a Robust External Financial Plan
The globe is encountering a sequence of major geopolitical transformations marked by heightened tensions, strategic rivalries, and a decline in democracy.
The situation is clear, but whether the European Union (EU) can produce the necessary solutions to handle this situation - and importantly, prevent making sacrifices between its interests and values - remains to be seen. As leaders step into 2025 and assess Europe's position in the world, they need to concentrate on three pivotal aspects: the size of the threat Europe faces, the necessity of restoring trust, and the urgency of delivering outcomes.
Initially, the challenges confronting our world are daunting, and inaction is already causing severe consequences for lives and livelihoods globally, heightening the risk of conflicts, food insecurity, and pandemics. Collectively, as per the World Bank, these crises could move 132 million people into extreme poverty by 2030. Nonetheless, a sizeable funding shortage persists to tackle these cascading issues. The transition to renewable energy and the development of emerging economies require substantial investments, estimated by the UN and International Energy Agency at $2.5 trillion annually.
Subsequently, as the world grapples with these problems, a trust deficit has emerged between Europe and its partners, specifically Africa. The mid-term revision of the present Multiannual Financial Framework (MFF), which establishes the EU’s long-term budget for a seven-year period, suggested a change in priorities, fueling concerns about the EU's dedication to global concerns. Recognizing that Europe's interests are linked to its partners' is vital. A course correction is necessary to demonstrate that the EU can balance self-interest with common interest while fulfilling its international commitments and duties.
Finally, Europe must act swiftly. Given the evolving and urgent global challenges, investments in preparedness and prevention cannot be postponed. Delaying action will only amplify existing issues, making them more complicated and more costly to address in the future. The consequences of inaction are far-reaching and exceed the relatively small initial costs associated with strengthening global resilience. Ensuring the ongoing transparency and accountability of funds will be vital to achieving a tangible, enduring impact.
If leaders consider these three essential realities, they will realize that a robust external action budget within the following long-term budget is a solid reaction to the current threats and will limit costly trade-offs between the bloc's values and interests.
This year's discussions on the following MFF give the EU an opportunity to prepare for constructive engagement in a chaotic global environment that desperately needs it. The choices made now will impact not only the EU's financial stability but also its geopolitical influence and contribute to determining the security it can provide for its citizens and the world - in terms of health, economics, human rights, and safety.
Extraordinary times demand extraordinary measures. Responding to a world in disarray, 70 organizations are uniting to urge the EU to intensify its global engagement and reaffirm its commitment to international partnerships through a bold external action budget within the following MFF - and we are just getting started.
Our goals are lofty, but the stakes are higher. A powerful EU, propelled by a future-oriented budget, is crucial in today's complicated and volatile environment and a vital instrument for achieving the EU's interests and upholding its values. By significantly increasing funding for global development and climate action, the EU can help mold a future where individuals flourish, nations prosper, and our planet prospers.
Written with the support of Ndidi Okonkwo Nwuneli (The ONE Campaign), Eloise Todd (PAN) and Mark Vermeulen (Aidsfonds).
1.The European Union (EU) needs to demonstrate its commitment to global concerns, as concerns about the EU's dedication towards these issues have arisen due to the mid-term revision of the Multiannual Financial Framework (MFF).
2.The EU's role in tackling the world's major challenges, such as poverty reduction and climate action, requires substantial investments, estimated by the UN and International Energy Agency at $2.5 trillion annually.
3.As Europe grapples with these challenges, transparency and accountability in the use of funds will be vital to achieving a tangible, enduring impact.
4.The EU's budget, particularly the external action budget, has the potential to limit costly trade-offs between the bloc's values and interests in the face of current threats.
5.In the context of global challenges, the EU can help shape a future where individuals thrive, nations prosper, and the planet prospers by significantly increasing funding for global development and climate action.