The Stakes Are High: Why The EU Needs An Ambitious External Budget
Originally published on Forbes
The world is undergoing a series of profound geopolitical shifts marked by rising tensions, strategic rivalries, and democratic backsliding.
The analysis is crystal clear; however, whether the European Union (EU) can forge the solutions needed to navigate this reality - and, crucially, avoid creating trade-offs between its interests and values - remains to be seen. As leaders enter 2025 and evaluate Europe’s role in the world, they must focus on three key factors: the scale of the threat Europe faces, the need to rebuild trust, and the urgency of delivering impact.
Firstly, the challenges facing our planet are staggering, and failure to act is already devastatingly impacting lives and livelihoods worldwide, increasing the risk of conflicts, food insecurity, and pandemics. Together, according to the World Bank, these crises could push 132 million people into extreme poverty by 2030. Yet, a substantial funding gap persists to address these cascading challenges. The energy transition and development of emerging economies demand significant investments, estimated by the UN and International Energy Agency at $2.5 trillion annually.
Secondly, as the world grapples with these crises, a trust deficit has emerged between Europe and its partners, particularly Africa. The mid-term revision of the current Multiannual Financial Framework (MFF), which sets the EU’s long-term budget for a seven-year period, signaled a shift in priorities, raising concerns about the EU's commitment to global issues. It is crucial to recognize that Europe's interests are intertwined with those of its partners. A course correction is needed to show that the EU can align self-interest with common interest whilst upholding its international commitments and responsibilities.
Finally, Europe must act urgently. Given the evolving and urgent global challenges, investments in preparedness and prevention cannot wait. Delaying action will only exacerbate existing difficulties, making them more complicated and more costly to address in the future. The consequences of inaction are far-reaching and outweigh the relatively small upfront costs of boosting global resilience. Ensuring the continued transparency and accountability of funds will be essential to achieving a tangible, lasting impact.
If leaders weigh these three critical realities, they will see that an ambitious external action budget in the next long-term budget is a robust response to today’s threats and will limit costly trade-offs between the bloc’s values and interests.
This year’s negotiations on the next MFF are an opportunity for the EU to plan for positive engagement in a global landscape that sorely needs it. The choices made now will affect not only the EU's financial health but also its geopolitical influence and help determine the security it can provide for its citizens and the world - in terms of health, economics, human rights, and safety.
Unprecedented times call for unprecedented measures. In response to a world in turmoil, 70 organizations are uniting to urge the EU to deepen its global engagement and reaffirm its commitment to international partnerships through an ambitious external action budget in the next MFF - and we are just getting started.
Our ambitions are big, but the stakes are higher. A strong EU, backed by a forward-looking budget, is essential in today’s complex and volatile environment and a critical tool for achieving the EU’s interests and promoting its values. By significantly increasing funding for global development and climate action, the EU can help shape a future where individuals thrive, nations prosper, and our planet flourishes.