The European Commission is improving the efficiency of the External Action Guarantee (EAG) to stimulate investments in partner countries through the Global Gateway strategy. The EU strengthens its role as a global player by enhancing strategic capabilities.
The EAG supports projects such as green hydrogen production in Namibia and digital connections between Europe, Africa, and Asia. The current proposal aims to reinforce this powerful financing tool, enhancing the EUs capacity to deliver aid and manage financial risks better.
The proposal seeks a more dynamic use of EU resources without extra budget, through targeted changes in investment rules. Flexible rules enable the transfer of extra funds between different guarantee instruments, maximizing the efficiency of foreign aid. The EU also creates additional investment space by reducing the risk coverage of some European Investment Bank (EIB) loans.
Additionally, simplification measures are introduced to shorten procedures, allowing faster investments. Implementation partners like the EIB, the European Bank for Reconstruction and Development (EBRD), and other European development financial institutions can work more efficiently.
Some simplification measures include:
- Consolidated and streamlined reporting requirements to ease compliance and monitoring.
- Fewer negotiations due to the use of top-ups and umbrella agreements, simplifying the contracting process.
- Simplified blending processes, especially in collaboration with the EIB, to accelerate project timelines.
Background
The Global Gateway strategy provides the framework for the EUs external actions, aiming for sustainable development and resilience through value-driven investments.
The NDICI - Global Europe offers a unified financial structure to promote investments outside the EU, based on three pillars: the EFSD+, the EAG, and financial assistance.
The EFSD+ is the largest financial instrument currently available to support investments outside the EU.
With EFSD+, the EU is channeling €39.8 billion in guarantee capacity globally for 2021-2027.
For More Information
Proposal for increased efficiency of the External Action Guarantee
Commission staff working document accompanying the Proposal
European Fund for Sustainable Development Plus
Neighbourhood, Development and International Cooperation Instrument - Global Europe