EU development ministers held an orientation debate on the future European Financial Architecture for Development (EFAD), with the participation of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).
Ministers discussed, in particular, the conclusions and findings of the “Feasibility study on options for strengthening the future European Financial Architecture for Development”, and provided political guidance on the way forward.
In line with the outcome of the Feasibility Study, ministers expressed marked support for a reinforced Team Europe approach, which will have the benefit of avoiding fragmentation, increase synergies, and enhance the collective impact of EU support on development.
Ministers also stressed that EU action should be guided by a strong political steer and that seamless coordination and strong governance are essential to the success of this approach.
“At today’s informal videoconference with the development ministers, we made an important step forward towards an enhanced European financial architecture for development (EFAD) and looked at the findings and options presented by the Feasibility Study. To meet the current and future global challenges and establish the EU leadership to ‘build back better’, we need to leverage the full potential of EFAD by building on the strengths and complementarities of all its actors. We are committed to develop concrete measures for a meaningful improvement of the current architecture, in particular by strengthening coordination and developing joint and complementary investments among European development financial institutions, inter alia. Of course, Team Europe will play a significant role in this approach, notably by developing innovative joint actions and ensuring the visibility of EU external financing.” – Josep Borrell, High Representative for Foreign Affairs and Security Policy
The independent “Feasibility study on options for strengthening the future European Financial Architecture for Development” provides a comprehensive analysis of three options for the future of EFAD with the aim of ensuring a strong and coherent European approach that can best deliver on the EU’s external policy objectives and geopolitical interests.
Overall, the study concludes that “building on already existing resources and complementarities seems to be the most suitable scenario to ensure a strong and coherent approach to address the current main development challenges (the so-called Status Quo+ scenario)”.
The discussion will feed into the preparation of Council conclusions on the strengthening of EFAD, which the Portuguese presidency plans to propose for approval in May 2021.