The new ‘NDICI – Global Europe’ (2021-2027)

The entry into force on 14 June 2021 of the new ‘Neighborhood, Development and International Cooperation Instrument (NDICI) – Global Europe’ is a historic achievement for the EU external action.

Background

NDICI – ‘Global Europe’ incorporates the cooperation with Africa, the Caribbean and the Pacific into the budget, which has been financed for decades by the European Development Fund (EDF) . This Fund was directly financed by the EU Member States, not by the EU budget, and therefore was not subject to the scrutiny of the European Parliament. Through NDICI – ‘Global Europe’, the EU will also boost its support to sustainable investment worldwide under the European Fund for Sustainable Development Plus (EFSD+) by leveraging private capital to complement direct external cooperation grants. The EFSD+ will be backed by a €53.4 billion External Action Guarantee, which will also cover the Western Balkans.

The European Commission welcomes the endorsement by the European Parliament and the Council, the political agreement on the Neighborhood, Development and International Cooperation Instrument (NDICI) – ‘Global Europe’ for the next MFF period (2021-2027). This instrument will support the EU’s external action with an overall budget of €79.5 billion in current prices.

NDICI IS MOVING BEYOND A TRADITIONAL DEVELOPMENTAL APPROACH

‘Global Europe’ is a game changer in the field of international cooperation, as it is adapted to the EU policy priorities rather than vice versa. It is driven by a ‘policy first’ and ‘value-driven’ approach that will enable the EU to take a stronger geopolitical approach to its external action.

With an overall allocation of €79.5 billion in current prices, the new instrument will cover the EU cooperation with all third countries. The total allocation will be divided as follows:

• €60.38 billion for geographic programmes (at least €19.32 billion for the Neighbourhood, at least €29.18 billion for Sub-Saharan Africa, €8.48 billion for Asia and the Pacific, and for Americas and the Caribbean €3.39 billion);
• €6.36 billion for thematic programmes (Human Rights and Democracy, Civil Society Organisations, Peace, Stability and Peace Conflict Prevention and Global Challenges);
• €3.18 billion for rapid response actions.

A “cushion” of unallocated funds of €9.53 billion could top-up any of the above-mentioned programmes and rapid response mechanism, to address unforeseen circumstances, new needs or emerging challenges and promote new priorities. The new instrument will particularly support countries most in need to overcome the long-term developmental challenges and will contribute to achieving the international commitments and objectives that the Union has agreed to, in particular the Sustainable Development Goals, the 2030 Agenda and the Paris Agreement. It merges several current external financing instruments under the EU budget.