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EU proposes jump in crisis funding as U.S. steps back-document

By Robin Emmott

 

European Union foreign policy chief Federica Mogherini speaks during an international conference on the future of Syria and the region, in Brussels, Belgium, April 25, 2018. REUTERS/Francois Walschaerts

 

BRUSSELS (Reuters) - The European Union's foreign policy chief will on Wednesday propose a 30 percent rise in its foreign aid budget for 2021-2027, according to a document seen by Reuters, as the bloc seeks to increase its influence while the United States pulls back.

 

From Mexico to Myanmar, the economically powerful bloc's foreign aid and development budget is a large part of the "soft power" which supports its international diplomacy, especially as it lacks a unified military.

 

But the EU, the world's biggest aid donor, holds its money for grants and loans through a host of different funds, known as "external action financing instruments", often making its response to global crises slow and confused.

 

As the European Commission sets out its common budget proposal on Wednesday, EU foreign policy chief Federica Mogherini will also propose a single fund responsible for managing most of the 123 billion euros (£108.67 billion) planned for the 2021-2027 period, an internal document shows.

 

The increase compares to 95 billion euros for the 2014-2020 external financing budget, split between 19 EU "instruments", each with separate geographical and administrative procedures.

 

A few separate EU funds would still remain, for instance for funding Syrian refugees in Turkey.

 

Seeking to support Ukraine after its 2014 pro-EU uprising, stem a migrant crisis in Syria and deal with failing states on its borders, the European Union is also seeking to reduce its reliance on the United States.

 

The United States spends about $50 billion a year in foreign aid, but that includes running diplomatic missions and giving academic grants. U.S. President Donald Trump has withheld aid in the Middle East and at a recent Syria donor conference, questioning its value and calling on others to pay.

 

CRISIS RESERVE

The EU's proposed single "Neighbourhood and International Cooperation Instrument" would have a 10.5-billion-euro reserve for the first time to respond to new crises around the world, rather than the current system of negotiating a reallocation of funds from other parts of the budget.

 

"A substantial reserve of 10.5 billion euros is a key element of the reform," the EU document said.

 

"We have seen in the current long-term budget that we need significant reserve funds to become more responsive and flexible in case of unforeseen circumstances in a constantly evolving global environment," it said.

 

The proposal must still be approved by EU lawmakers and EU governments as part of arduous common budget negotiations.

The EU has been criticised for a lack of strategy in its global development role as France pushes for money for its former colonies in Africa, Spain in Latin America and Britain for the Commonwealth. But the EU money is separate from spending by individual governments.

 

Finding extra money and slimming the EU funds into a single instrument will not be easy, in part because Britain is set to leave the bloc next year and cuts out a large contributor.

 

Politicians and aid groups are expected to resist the change, fearing a loss of money for their causes, officials say.

 

(Reporting by Robin Emmott; Editing by Angus MacSwan)

 

-- © Copyright Reuters 2018-05-02

[DoctorG]

trough/snouts

[FreddieRoyle]

It is so easy to spend (other peoples) money. Thank Dickens we Brexitted and don't need to pay for these non-elected bureaucrats to virtue-signal abroad. Did they not stop to think about using the funds in the EU where they are direly needed, fortifying and policing borders for starters?

 

and then there is this little gem "Finding extra money and slimming the EU funds into a single instrument will not be easy, in part because Britain is set to leave the bloc next year and cuts out a large contributor."

 

 So after all the nonsense written on these threads it turns out that Britain WAS a giver, not a taker? Thought so.

[Ketyo]

So the EU is set to increase its influence around the world as the US and UK turn inwards and disappear up their own orifices. No doubt China will out-muscle the EU in Asia though with its no strings attached policy.

Edited May 2, 2018 by Ketyo
Change

[stevenl]

2 hours ago, FreddieRoyle said:

It is so easy to spend (other peoples) money. Thank Dickens we Brexitted and don't need to pay for these non-elected bureaucrats to virtue-signal abroad. Did they not stop to think about using the funds in the EU where they are direly needed, fortifying and policing borders for starters?

 

and then there is this little gem "Finding extra money and slimming the EU funds into a single instrument will not be easy, in part because Britain is set to leave the bloc next year and cuts out a large contributor."

 

 So after all the nonsense written on these threads it turns out that Britain WAS a giver, not a taker? Thought so.

Sounds like you missed the part where it mentions this has to be approved by EU lawmakers and national governments, all elected bodies.

 

And you're, I presume on purpose, misrepresenting the comment made about the single budget. Thought so.

[gamini]

sounds a sensible solution to cut the red tape

[Srikcir]

Guess what comes with the withdrawal of the US from its allies?

Loss of intelligence sources and willingness to support any US foreign missions, strategies and policies.