EU budget 2014 – 2020: What does it mean for EU Development Cooperation?

On 7 February, after tough negotiations, European leaders agreed on the Multiannual Financial Framework (MFF) 2014 - 2020. For the first time in the European Union (EU) history it concerns a budget-cutting deal.

Even though in real terms EU aid was frozen at current levels, the budget cutting from the original EC proposal makes it harder for the EU and the Member States (MS) to meet their development commitments made in 2002 for spending 0.7 % of gross national income (GNI) on official development assistance (ODA) by 2015.

In comparison with the European Commission (EC) budget proposal that was presented in July 2012, the current agreement cuts over 16% from the Global Europe budget heading, which includes development cooperation and humanitarian aid. The spending within this heading is thus reduced from suggested €69.886 million to €58.704 million. The off-budget European Development Fund (EDF) and Emergency Aid Reserve were reduced by 11% and 20% from what was proposed. In numbers, EDF was cut down to €26.984 million.

Izabella Toth, board member of CONCORD, the European Confederation of Relief and Development NGOs, commented the EU MFF 2014-2020 deal as follows: “EU leaders have dealt a blow to an ambitious future development and humanitarian budget. Instead of supporting a strong aid budget to meet global challenges, and honor their aid commitments, EU leaders have chosen short term fixes over long term strategic thinking. Unfortunately, this comes as little surprise, as several key member states that traditionally support aid have been extra quiet in these negotiations.”

The ball is now in the European Parliament’ (EP) side of the court. The co-decision is not expected to take place before mid-2013. If the Council’s MFF 2014-2020 proposal is approved by the EP, the EC will propose a division of the Global Europe heading instruments. During these discussions civil society organisations have the opportunity to share their views and influence the process.


For more information see:
CONCORD: AidWatch. Who’s on/off target? Available at: http://aidwatch.concordeurope.org/who-s-on-off-target 

EuropeAid: EU Accountability Report 2012 on Financing for Development. Available at: http://ec.europa.eu/europeaid/what/development-policies/financing_for_development/accountability_report_2012_en.htm

European Council: Conclusions (Multiannual Financial Framework). Euco 37/13. 7/8 February 2013. Brussels. Available at: http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/135344.pdf

Izabella Toth cit. in Rosenkranz, R.: EU budget deal freezes foreign aid spending. Devex.com. 8 February 2013. Available at: https://www.devex.com/en/news/eu-budget-deal-slashes-foreign-aid/80291.


Information provide by Katarina Sramkova, TRIALOG