A Commission expert group, including the European Investment Bank and Member States, has begun studying the possible establishment of an EU Platform for External Cooperation and Development. The aim would be to increase the impact of EU external cooperation activities by optimising financial mechanisms blending EU grants and loans. This will allow to leverage limited financial resources to support external and development policy priorities for the benefit of EU partner countries.
Vice-President for Economic and Monetary Affairs and the Euro Olli Rehn and Commissioner for Development Andris Piebalgs said: "An EU platform could provide a strong additional impetus to pooling our resources and promoting a European approach." They continued: "The road out of poverty for developing countries requires the creation of a favourable business environment for the local private sector, attracting private domestic and foreign investment, and improving infrastructure. As outlined in our new communication on the future of development policy 'Agenda for Change', the EU should further leverage private sector activity and resources for delivering public goods."
EIB President Philippe Maystadt said: “In a period of resource constraints within the EU, it becomes ever more important that the EC, the EIB, Member States and other European financial institutions join forces to support the EU’s ambitious external policy agenda. I firmly believe that building on the expertise and resources of all EU actors is the way forward to maximise the effectiveness of EU financing in support of partner countries.”
The European Parliament and the Council requested the European Commission to create a group of experts of Member States, the European External Action Service and the European Investment Bank, to assess the costs and benefits of establishing an “EU Platform for External Cooperation and Development”. The group of experts will consult with other relevant actors, notably multilateral and bilateral finance institutions. Based on the findings of the group of experts, the Commission will report to the European Parliament and to the Council in mid-2012 and, if appropriate, make recommendations for a Platform.
Since 2007, the EU has already created mechanisms such as the EU-Africa Infrastructure Trust Fund, the Neighbourhood Investment Facility, the Western Balkans Investment Framework, the Latin American Investment Facility and the Investment Facility for Central Asia. About EUR 570 million in grants from the EU budget and the European Development Fund have leveraged some EUR 8 billion loans from the EIB and other European finance institutions, which has unlocked total project financing for EU external action and development policy of more than EUR 20 billion.
An “EU Platform for External Cooperation and Development” could further optimise the functioning of such mechanisms for the blending loans and grants outside the EU, notably by mobilising additional funding including from the private sector.