REPORT FROM THE COMMISSION TO THE COUNCIL Commission's roadmap for an improved European financial architecture for development and 2021 progress report
Date: 2022-03-24
Institutions: Directorate-General for International Partnerships, European Commission
Subjects: EU financing, EU growth strategy, EU investment, EU programme, cooperation policy, development policy, economic development, financial policy, investment policy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 24.3.2022  COM(2022) 139 final  REPORT FROM THE COMMISSION TO THE COUNCIL Commission's roadmap for an improved European financial architecture for development and 2021 progress report  
 
 
The present document is the Commission’s response to the Council conclusions on enhancing 
the  European  financial  architecture  for  development,  adopted  on  14  June  2021,  in  which  the 
Council invited the Commission to present a roadmap for the implementation of the objectives 
and  recommendations  contained  in  the  conclusions,  and  to  report  annually  on  the  progress 
achieved.  This  roadmap  for  an  improved  financial  architecture  aims  to  broaden  the  impact, 
efficiency and visibility of the European financial architecture for development, by: 

-  Affirming a strong EU policy steer, 
-  Promoting enhanced coordination, 
-  Building a more inclusive financial architecture, 
-  Ensuring increased visibility and influence of the EU and its Member States in a Team 

Europe approach.  

It focuses on the actions which are in the remit of the Commission in cooperation with the EU 
High  Representative/Vice  President  (HR/VP).  In  addition,  this  report  presents  the  state  of 
implementation on these actions as of end-2021. 

1.  THE NEED TO IMPROVE THE EUROPEAN FINANCIAL ARCHITECTURE  

1.1  Context 

The  EU  and  its  Member  States  have  traditionally  been  the  world's  biggest  development 
assistance provider, accounting for about 46% of global aid in 2020 (EUR 66.8 billion)1. EU 
assistance has been instrumental in contributing to eradicating poverty, reducing vulnerabilities 
and  inequalities,  and  helping  partner  countries  reach  the  Sustainable  Development  Goals 
(SDGs) and the Paris Agreement objectives.  

Public resources are however not sufficient to address the magnitude of ever growing needs 
to reach the SDGs. As a result, the EU and its Member States are increasingly going beyond 
the  more  traditional  aid  channels  and  using  official  development  assistance  (ODA)  to 
generate additional sources of finance, notably by crowding in private capital. They are thus 
increasingly working in partnership with financial institutions and relying more on innovative 
financial  instruments,  using  public  funds  to  leverage  investments  for  example  through 
blending or through guarantees.  

The European financial architecture for development has thus become more complex over the 
years due to the emergence of these  new instruments and to the growing number of actors it 
comprises,  including  the  Commission,  the  HR/VP,  EU  Member  States  and  their  national 
development finance institutions and organisations, as well as the European Investment Bank 
(EIB)  and  the  European  Bank  for  Reconstruction  and  Development  (EBRD).  Besides,  the 
Commission  also  engages  intensely  with  a  variety  of  international  financial  actors.  All  these 
actors work towards the achievement of the SDGs, but have specific priorities and modalities 
of  intervention,  offering  different  strengths  and  comparative  advantages,  notably  in  terms  of 
geographical, sectoral or financial expertise.  

The COVID-19 pandemic has added to the urgency of tackling development challenges and 
hence to the urgency of enhancing the European financial architecture for development. The 

1 European  Commission  (2021),  Team  Europe  increased  Official  Development  Assistance  to  €66.8  billion  as  the  world's 

leading donor in 2020, 13 April 2021. 

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COVID-19 economic fallout has exacerbated financing needs and has dramatically impacted 
EU partner countries, reversing years of progress made towards achieving the SDGs. In 2020, 
the  annual  SDG  financing  gap  in  developing  countries  was  estimated  at  EUR  3.7 trillion2. 
Massive  investments  are  needed  more  than  ever  in  order  to  close  this  financing  gap.  All 
funding  sources  (public/private,  domestic/international)  combined  with  effective  policy 
reforms  need  to  be  efficiently  deployed  to  build  back  better,  whilst  leaving  no  one  behind. 
Sustainable finance will thus be crucial to mobilise international and domestic private capital 
to finance sustainable infrastructure investments. 

Further, against a background of significant global geopolitical challenges, and the rising role 
of emerging donors, the EU requires a new approach to promoting its values-based, human-
centric  development  model,  as  well  as  to  protecting  and  promoting  EU  political,  economic 
and security interests around the world.  

In  view  of  these  global  development  challenges,  the  European  financial  architecture  for 
development needs to be even more effective, efficient, coherent and impactful. Increased 
coordination  through  a  Team  Europe  approach  is  more  critical  than  ever  to  avoid 
fragmented  actions  and  ensure  better  synergies  and  efficiencies.  This also includes better 
capitalising on the long-standing experience of the various actors and, where possible, pooling 
financial resources, for higher impact and greater mobilisation of private sectors’ investment.  

Furthermore, an improved European financial architecture for development with a strengthened 
policy steer is paramount to reinforce the EU’s role as a global actor and can play a crucial 
role  vis-à-vis  our  geopolitical  ambitions,  notably  in  promoting  our  strategic  interests  and 
values around the world. The European financial architecture for development should lead to 
better  complementarity  between  aid,  development  investment,  reform  agenda,  and  diplomacy. 
Only in this way can the  European financial  architecture for development  maximise  the 
use of existing ODA resources and accelerate financial flows to the areas where the needs 
are the greatest, increase development impact and attract better visibility of the entire EU 
and its Member States efforts towards achieving the SDGs.  

The present document sketches out a number of actions that the Commission intends to take to 
enhance  the  European  financial  architecture  for  development.  The  report  also  shows  the 
important  steps  already  taken  in  this  direction.  In  this  respect,  the  launch  of  the  Global 
Gateway  strategy 3 in  December  2021  and  its  Global  Gateway  Africa-Europe  Investment 
Package4 are  a key  reflection of the new  environment, and point to  further evolution  in  the 
way  the  EU  proceeds  with  its  external  activities  in  the  coming  years.  Underpinned  by  a 
values-driven  approach,  Global  Gateway  is  a  plan  for  major  investment  in  infrastructure 
development  around the  world  to  strengthen digital,  transport and energy  networks through 
sustainable and high-quality projects. It offers certainty and a level-playing field for investors 
and businesses, and high levels of transparency and standards in order to deliver lasting social 
and economic benefits for people.  

2 OECD (2020), Global Outlook on Financing for Sustainable Development 2021: A New Way to Invest for People and Planet, OECD 

Publishing, Paris. 

3 Joint  Communication  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social  Committee,  the 

Committee of the Regions and the EIB on The Global Gateway, 01 December 2021, JOIN(2021) 30 final. 

4 European Commission (2022), EU-Africa: Global Gateway Investment Package, 18 February 2022. 

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Moreover, the Neighbourhood, Development and International Cooperation Instrument (NDICI) 
– Global Europe5 (with a total budget of EUR 79 billion) and the Instrument for Pre-accession 
Assistance  III 6  (EUR  14  billion)  adopted  in  2021  are  significant  landmarks  that  will  be 
instrumental in improving the current financial architecture. They bring substantial improvements 
in terms of simplification, EU strategic policy steer, also providing incentives for better strategic 
and geopolitical coordination amongst European actors  and increasing the potential to leverage 
capital from the private sector so as to deliver transformational impact on the ground. 

Finally, in view of the tremendous SDG financing gap, the Commission has just launched a call 
for  applications  in  view  of  setting  up  a  High-level  expert  group  which  will  provide  the 
Commission with recommendations so as to further accelerate the flow of private capital to low- 
and middle-income countries. 

1.2  Renewed  discussions  on  how  to  enhance  the  European  financial  architecture  for 

development 

Discussions on how to improve the European financial architecture for development have been 
taking  place  for  more  than  a  decade7 at  various  levels  and  involving  different  stakeholders 
groups.  In  2018,  the  Commission  adopted  the  Communication  ‘Towards  a  more  efficient 
financial architecture for investment outside the European Union’8, which highlighted some 
of the short-comings of the existing set-up and outlined some initial measures to improve the 
financial architecture. 

Following the 2019 report by the High-level Group of Wise Persons9 and the 2021 Feasibility 
study 10  on  options  for  strengthening  the  future  European  financial  architecture  for 
development, the June 2021 Council Conclusions11 highlighted the importance of enhancing 
and  improving  the  current  institutional  set-up  of  the  European  financial  architecture  for 
development  (Status  Quo+)  and  underlined  ‘the  need  to  make  the  European  financial 
architecture  for  development  more  effective,  efficient,  development-focused,  coherent 
and  visible,  in  line  with  the  policy  first  principle  and  with  the  strategic  interests  and 
values  of  the  EU.’ The Council also agreed that the EU’s financial architecture ‘should be 
based on an  open,  collaborative  and  inclusive  architecture,  working  with  all  European 
development  banks  and  financial  institutions,  building  on  their  respective  country, 
sectoral or financial expertise, value-added and resources’.  

5 Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, 
Development  and  International  Cooperation  Instrument  –  Global  Europe,  amending  and  repealing  Decision  No 
466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 2017/1601 of the European 
Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1-78). 

6  Regulation  (EU)  2021/1529  of  the  European  Parliament  and  of  the  Council  of  15 September  2021  establishing  the 

Instrument for Pre-Accession assistance (IPA III) (OJ L 330, 20.9.2021, p. 1). 

7 See for instance Camdessus, M (2010), European Investment Bank’s external mandate 2007‐2013 Mid‐Term Review - Report and 

recommendations of the Steering Committee of “wise persons”, EIB Publishing, Luxembourg. 

8 Communication from the Commission to the European Parliament, the European Council, the Council and the EIB on Towards a 

more efficient financial architecture for investment outside the European Union, 12 September 2018, COM(2018) 644 final. 

9 High-Level Group of Wise Persons on the European financial architecture for development (2019), Europe in the world – 
The future of the European financial architecture for development, General Secretariat of the Council of the EU, Brussels. 
10 Note from the General Secretariat of the Council to the EU Delegations on Feasibility study on options for strengthening 
the future European financial architecture for development  – Executive Summary, 14 April 2021, GSC(2021) 6961/1/21 
REV 1.  

11 Council conclusions on Enhancing the European financial architecture for development, 14 June 2021, GSC(2021) 9462/1/21 

REV 1. 

  See  also  Council  conclusions  on  Strengthening  the  European  financial  architecture  for  development,  5  December  2019, 

GSC(2019) 14434/19. 

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The Council highlighted in its conclusions the necessity to ‘mobilise sustainable private sector 
financing’.  While  traditionally  the  private  sector  has  not  been  at  the  centre  of  development 
investment  strategies,  there  is  a  growing  consensus  that  its  contribution  is  crucial  to  finance 
development (as a complement to limited public sector resources) and to foster sustainable jobs 
and growth in partner countries.  

The  Council  called  on  the  EIB  and  the  EBRD  to  ‘continue  the  systematic  deepening  of  their 
coordination  both  at  strategic  and  technical  level’,  to  ‘coordinate  with  other  global  financial 
institutions active in their countries of operation’ and to ‘strengthen their comparative advantages 
in  development  finance,  avoid  fragmentation  and  maximise  their  development  impact’.  More 
generally, the Council calls on all European development actors to increase their collaboration.  

The  Council  called  on  the  Commission  to  present  a  roadmap  to  improve  the  European 
financial architecture for development. Among others, the Council raised the following areas 
for  improvement:  coordination  and  policy  steer  by  the  Commission  in  implementing  EU 
development policy, providing more incentives for co-financing and risk-sharing; reinforcing 
the  role  of  the  EFSD+  Strategic  Board;  simplifying  access  to  financing;  strengthening 
inclusiveness; supporting smaller actors in their pillar assessment; supporting the creation of 
pipelines of projects  through technical  assistance;  strengthening  the  Team  Europe approach 
to increase the visibility of joint engagement.  

1.3 

Initiatives led by partner institutions to enhance their cooperation  

The  European  financial  architecture  for  development  encompasses  a  multiplicity  of  actors 
(see Annex for a tentative mapping).  

In  line  with  the  discussions  mentioned  above,  and  building  on  lessons  learnt,  European 
development  actors  have  been  striving  to  strengthen  their  cooperation  through  different 
initiatives. Member States, their national development banks and organisations, European and 
international  financial  institutions,  have  partnered  up  under  different  networks  according  to 
their scope of intervention, strategic priorities, interests and needs. 

Several  initiatives  gather  stakeholders  according  to  their  nature/scope  and  imply  different 
degrees of cooperation: 

  EDFI  Association12 (1992): brings together  development finance institutions (DFIs) 
(including  some  non-EU  members),  whose  mandate  is  to  support  the  private  sector. 
An EDFI management company has been established. 

  Enhanced  partnership 13  (2016):  composed  of  the  Commission,  three  public 

development banks and one development agency (all pillar assessed). 

  Practitioners’  network 14  (2007):  composed  mainly  of  pillar-assessed  European 
development  cooperation  organisations  (including  some  non-EU  members)  focusing 
on capacity-building and technical assistance.  

12 15  members:  Bio  (BE),  CDC  (UK),  COFIDES  (ES),  DEG  (DE),  Finnfund  (FI),  FMO  (NL),  IFU  (DK),  Norfund  (NO), 

OeEB (AT), Proparco (FR), SBI/BMI (BE), SIFEM (CH), Sace Simest (IT), SOFID (PT), Swedfund (SE).  

13 AFD, KfW, CDP, AECID and the European Commission. 
14 Members:  ADA  (AT),  AECID  (ES),  AICS  (IT),  AFD  (FR),  British  Council  (UK),  Camoes  (PT),  CPVA  (LT),  CzechAid 
(CZ), Enabel (BE), Expertise France (FR), FIIAPP (ES), GIZ (DE), LuxDev (LU), SlovakAid (SK), Sida (SE), SNV (NL), 
RoAid (RO); Associates: Danida (DK), FCDO (UK), MFA (EE), and MFA (NL); Observer: Commission. The Practitioners’ 
network provides feedback on policies from a practitioners’ perspective. 

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In parallel, there is also the 2012 memorandum of understanding15 between the EIB and 
the  EBRD  together  with  the  Commission,  which  has  led  to  regular  coordination  meetings 
between  the  banks.  It  has  also  paved  the  way  to  the  “Framework  Project  Cooperation 
Agreement” concluded by the two banks in October 2021 (see below).  

The  following  graph 16  provides  a  tentative  and  non-exhaustive  visual  representation  of 
existing collaboration initiatives led by Member States and development finance institutions:  

Other initiatives include for instance the EIB/KfW/AFD Mutual Reliance Initiative17 or the EIB-
EBRD  procurement  procedure  framework.  Numerous  co-financing  initiatives  have  also  been 
launched by partner institutions18. 

15  Memorandum  of  understanding  between  the  European  Commission,  the  EIB  and  the  EBRD  (2012)  in  respect  of 

Cooperation outside the European Union, Brussels. 

16 Please refer to annex for full list. 
17 EIB, KfW, AFD - co-financing operations and pooling resources for project appraisal and monitoring, information sharing 

and consultation. 

18Such as the ‘Interact Climate Change Facility’, shareholders of ICCF currently include: AFD, EIB, CDC, DEG,, PROPARCO, 
BIO, Finnfund, COFIDES, Norfund, OeEB, SIFEM, Swedfund, ‘European Financing Partners’, shareholders are EIB and 13 
EU  DFIs:  BIO,  CDC,  COFIDES,  DEG,  Finnfund,  FMO,  IFU,  PROPARCO,  Norfund,  SBI-BMI,  Swedfund,  SIFEM  and 
OeEB or the Friendship Facility (PROPARCO - France, FMO - the Netherlands and DEG - Germany). 

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2021 developments amongst European financing institutions  
In November 2021, the EIB and the EBRD jointly reported to the Council on actions undertaken as a 
follow-up  to  the  Council  Conclusions  on  enhancing  the  European  financial  architecture  for 
development19.  

Furthermore, both the EIB and the EBRD have recently been contemplating strategic orientations that 
could have an impact on the European financial architecture for development: 

  The EBRD is considering a possible limited and incremental expansion of its operations to 
selected countries, which should be decided at the annual meeting of its Board of Governors 
in May 2022. 

  As for the EIB, its Board of Directors approved the creation of a global branch, EIB global, 

for all operations outside the EU, which was launched in January 2022. 

Financing  institutions  have  recently  sought  to  increase  coordination  and  joint  activities.  Recent 
examples include:  

  The  EBRD  and  the  EDFI  Association  have  signed  a  memorandum  of  understanding 
(February 2021) to intensify collaboration among European DFIs with a strong private-sector 
focus, notably through knowledge sharing and co-financing. 

  The  members  of  the  enhanced  partnership  have  launched  a  co-financing  initiative  called 
‘Team  Europe  finance  platform’  (May  2021)  with  the  objective  of  enhancing  efficient 
cooperation  between  them,  notably  through  common  procedures  and  the  setting  up  of 
common  projects.  As  part of  the  platform,  AECID,  AFD,  CDP  and  KfW  will launch  a  co-
financing framework in 2022. 

  The  EBRD  and  the  EIB  have  concluded  a  “Framework  Project  Cooperation  Agreement” 
(October  2021)  which  provides  a  framework  for  enhanced  cooperation  on  joint  financing 
projects and platforms outside the European Union. The framework aims to cover all types of 
debt financing structures in the private or public sector. 

1.4  Previous  Commission  efforts  to  improve  the  European  financial  architecture  for 

development  

In line with the above-mentioned discussions and building on lessons learnt, the Commission 
has  introduced  major  improvements  to  the  European  financial  architecture  for  development 
over the years. A key step forward was the launch in 2016-2017 of the European External 
Investment  Plan20 and  of  the  European  Fund  for  Sustainable  Development  (EFSD)21, 
which  build  on  well-established  EU  blending  facilities22 and  offer  a  new  EU  budgetary 
guarantee  to  cover  investments  in  African  countries  and  in  the  EU  Neighbourhood, 
capitalising  on  the  expertise  of  relevant  public  and  private  actors  to  help  crowd  in  private 

19  Note  from  the  General  Secretariat  of  the  Council  to  the  EU  Delegations  on  European  Financial  Architecture  for 

Development – EIB-EBRD Joint Report, 25 November 2021, GSC(2021) 14398/21. 

20 The  EIP  brings  together  in  a  comprehensive  approach  three  complementary  pillars  (financing  to  leverage  additional 
resources through blending and the EFSD guarantee, technical assistance, investment climate). See Communication from the 
Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the 
Regions and the EIB on Strengthening European Investments for jobs and growth: Towards a second phase of the European Fund 
for Strategic Investments and a new European External Investment Plan, 14 September 2016, COM(2016) 581 final. 

21 Regulation  (EU)  2017/1601  of  the  European  Parliament  and  of  the  Council  of  26  September  2017  establishing  the 
European  Fund  for  Sustainable  Development  (EFSD),  the  EFSD  Guarantee  and  the  EFSD  Guarantee  Fund  (OJ  L  249, 
27.9.2017, p. 1).  

22 Regional facilities: Africa Investment Platform, Caribbean Investment Facility, Investment Facility for the Pacific, Asia 
Investment Facility, Investment Facility for Central Asia, Latin America Investment Facility, Neighbourhood Investment 
Platform  and  Western Balkans Investment Framework. From a thematic perspective: the  agriculture  and  electrification 
financing initiatives, agriFI and electriFI.  

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sector investment based on three complementary pillars. The Western  Balkans  Investment 
Framework is also a good example of enhanced dialogue and cooperation which integrates the 
beneficiary  countries  alongside  the  Commission,  the  Member  States  and  European  and 
international financial institutions. 

Specific mention should be made of the EU Platform for Blending in External Cooperation 
(EUBEC)23 launched by the Commission in 2012 with the aim of optimising the functioning of 
mechanisms for the blending of grants and loans in the field of external action. 

The  Commission  has  also  established  regular  strategic  high-level  dialogues  with  European 
and  international  financial  institutions  (e.g.  EIB,  EBRD,  World  Bank  Group,  International 
Monetary  Fund,  Asian  Development  Bank,  Inter-American  Development  Bank)  to  discuss 
joint political and policy objectives.  

In 2015, the Commission launched the enhanced coordination and cooperation initiative with 
the  EIB,  EBRD,  World  Bank  Group  and  International  Monetary  Fund,  with  a  view  to 
reinforcing  policy 
to  specific 
Neighbourhood  and  Enlargement  countries  and  joint  work  in  key  sectors  such  as  energy 
efficiency and climate investment. 

leverage  and  alignment.  It 

joint  missions 

includes 

An  important  innovation  also  came  in  2020,  just  as  the  COVID-19  pandemic  was  putting  the 
EU’s  external  action  to  the  test.  The  magnitude  of  the  crisis  required  the  combined  efforts, 
resources and expertise of all European actors. The EU put forward a Team Europe approach24 
that  allowed  to  collectively  offer  substantial  support  to  EU  partner  countries,  providing 
humanitarian aid, supporting their health, water and sanitation systems, and addressing the socio-
economic  fallout.  The  EU  and  its  Member  States  response  to  the  COVID-19  crisis  in  a  Team 
Europe  approach25 demonstrated  the  scale  and  visibility  that  can  be  achieved  when  working 
together. This strong collaboration should be a source of inspiration for enhanced coordination 
between the EU and its Member States in their cooperation with EU partner countries.  

2.  ROADMAP FOR AN IMPROVED EUROPEAN FINANCIAL ARCHITECTURE FOR 

DEVELOPMENT 

2.1  Objectives 

The  Commission’s  roadmap  aims  to  enhance  the  European  financial  architecture  for 
development by building on the Team Europe approach. The Commission seeks to ensure a 
more  impactful,  efficient,  coordinated,  policy-driven,  inclusive  and  visible  European 
financial architecture for development. Such an enhanced financial architecture is needed to 
generate  transformational  initiatives,  boost  public  investments  in  partner  countries,  and 
ensure they have the catalytic and demonstration effect needed to bring in private investors, 
and foster a thriving private sector, which are key to create sustainable jobs and growth.  

23 European Commission (2019), EU Platform for Blending in External Cooperation. 
24 The “Team Europe” approach draws on contributions from the European Union and combines resources  mobilised by EU 
Member States and financial institutions, while respecting the EU competences and the decision-making procedures, including 
the voting rules, established by the EU Treaties. The Team Europe approach relies on the EU, its Member States, their finance 
institutions including national development banks and implementing agencies, as  well as the EIB and the EBRD.  It is also 
implemented in EU partner countries, including through EU delegations, to facilitate EU coordination on the ground.  

25 Joint  Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social 
Committee and the Committee of the Regions on the Global EU response to COVID-19, 8 April 2020, JOIN(2020) 11 final. 

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The roadmap is informed by the findings of the feasibility study and the recommendations of the 
Wise  Persons  Group  report,  the  related  Commission  report 26 and  by  various  non-papers  or 
position papers submitted by financial institutions. It also builds on the recognised success of the 
Team Europe approach and the coordination efforts among EU financial institutions.  

It  further  looks  at  the  European  financial  architecture  for  development  in  a  broader 
international context where coordination and complementarity with international stakeholders 
can contribute to improving the international financial architecture. 

The improvements proposed aim at achieving the following four objectives: 

Affirming a strong EU policy steer  

A more effective European financial architecture for development requires an even stronger 
EU  policy  steer.  The  coherence  of  financial  institutions’  activities  with  EU  external  policy 
objectives needs to be reinforced so as to maximise the development impact of EU activities 
in third countries and their alignment with EU strategic interests.  

Promoting enhanced coordination  

The  European  financial  architecture  for  development  should  be  based  on  increased 
coordination, drawing on the diversity of all its actors so as to “deliver as one” and increase the 
coherence  of  EU  actions  in  partner  countries  for  greater  efficiency  and  transformational 
development impact, while crowding in private investors.  

Building a more inclusive financial architecture 

The  European  financial  architecture  for  development  should  be  inclusive  and  enable  the 
participation  of  all  interested  development  finance  institutions,  including  smaller  and  medium-
sized partners. 

Ensuring increased visibility and influence for EU and Member States actions in 
a Team Europe approach 

Increased visibility of the EU and Member States’ actions across the world calls for improved 
EU  branding,  including  through  the  Team  Europe  approach  and  feeding  into  the 
establishment  of  the  new  Global  Gateway  brand.  This  is  needed  to  ensure  that  the  EU’s 
perceived  role  in  the  world  matches  the  magnitude  of  its  support.  The  sizeable  EU 
shareholding  in  international  financing  institutions  calls  for  a  more  coherent  and  consistent 
“EU voice” to defend the EU’s strategic interests more efficiently. 

2.2  Measures 

In support to these objectives, the roadmap details the specific measures the Commission is 
putting  forward  to  achieve  these  four  objectives.  These  are  declined  into  specific  actions 
resulting  from  the  recently  adopted  NDICI–  Global  Europe  and  other  strategic  documents, 
and  additional  actions  that  will  support  improvements  in  policy  steer,  coordination, 
inclusiveness and visibility, respectively.  

26 Report  from  the  Commission  to  the  Council  on  the  recommendations  of  the  high-level  group  of  wise  persons  on  the 

European financial architecture for development, 31 January 2020, COM(2020) 43 final.  

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2.2.1  NDICI-Global Europe and other strategic documents  

Clearer policy direction and orientations  

As mentioned above, strengthened policy direction and orientations are essential to maximise 
the effects of EU external action and ensure a strong contribution to overall political goals and 
objectives.  The  NDICI-Global  Europe  and  Instrument  for  Pre-accession  Assistance  (IPA 
III) Regulations spell out the priorities the EU is aiming to support and specify spending targets 
for specific areas such as climate, migration and forced displacement, or human development. 
The Global  Gateway  Communication27 has provided additional steer on how to address the 
pressing  global  challenges,  from  climate  change  and  protecting  the  environment,  to 
strengthening  digitalisation,  improving  health  security,  boosting  EU  competitiveness  and 
securing  global  supply  chains.  The  Global  Gateway  Africa-Europe  Investment  Package28 
launched at the EU-AU Summit in February 2022, further specifies priorities for engagement in 
Africa to support a strong, inclusive, green and digital recovery and transformation. Finally, the 
EU  Strategy  for  Cooperation  in  the  Indo-Pacific  (September  2021)  are  the  basis  for 
investment  in  the  Asia-Pacific  Region.  For  the  Neighbourhood,  the  new  deliverables  for  the 
Eastern Partnership and the Joint Communication on a Renewed Partnership with the Southern 
Neighbourhood as well as their two accompanying Economic  Investment  Plans aim to spur 
the long-term recovery of these regions and their economic convergence with the EU. 

The  “policy  first”  principle  is  enshrined  in  the  NDICI-Global  Europe  and  IPA  III.  This 
implies that all EU external actions – including those  covered by EU budgetary  guarantees – 
need to support the policy priorities jointly agreed between the EU and its partner countries, as 
defined in the relevant programming documents. These programming documents as well as 
the  investment  plans  provide  a  clear  policy  direction  for  all  EU  cooperation  activities.  In 
addition, the geographic differentiation among cooperation activities also contributes to higher 
development impact by offering support measures and investment activities that are tailored to 
the beneficiary countries and regions, thus enhancing the strategic and consistent approach of 
the investment architecture. 

In application of this  “policy  first” principle in the context  of the EFSD+,  the  Commission 
and the HR/VP co-chair the EFSD+ Strategic Board giving political direction for upcoming 
operations.  With  NDICI-Global  Europe,  the  EFSD+  Strategic  Board  and  the  Regional 
Operational  Boards  have  a  more  prominent  role,  steering  both  blending  operations  and 
budgetary  guarantees  (including  those  that  were  previously  managed  indirectly  under  the 
External Lending Mandate or the ACP Investment Facility). In addition, the Western Balkans 
Investment  Framework  continues  to  be  the  leading  body  to  steer  support  and  investments 
across the Western Balkans in an open and inclusive Team  Europe (and beyond) approach, 
working in full coherence with the EFSD+ Strategic Board. 

27 Joint  Communication  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social  Committee,  the 

Committee of the Regions and the EIB on The Global Gateway, 1 December 2021, JOIN(2021) 30 final. 

28 European Commission (2022), EU-Africa: Global Gateway Investment Package, 18 February 2022. 

9 

 
 
 
 
 
 
 
 
 
                                                           
Roadmap:  
The Commission, in cooperation with the HR/VP, will:  

-  provide  a  clear  policy  direction  in  the  programming  documents  and  Economic  and 
Investment  Plans  and  ensure  that  all  EU  investment  actions  under  NDICI-Global 
Europe and IPA III are aligned with the priorities set in the programming documents; 
-  publish all programming documents, so that policy priorities are clear for all the players 

- 

- 

the  EFSD+  Strategic  Board 29  supports 

taking part in the EU’s financial architecture for development;  
ensure 
complementarity and coherence of operations implemented under EFSD+;  
continue  providing  incentives  to  encourage  specific  political  priorities  and  achieve 
higher impact, e.g. to ensure that investments are targeted to those regions, countries 
least  developed  countries  and  other  priority  regions/countries  as 
(including 
appropriate), thematic priorities (e.g.  climate, connectivity…) or  groups  (e.g.  youth, 
women, migrants…) that are a political priority for the EU. 

the  overall  coordination, 

Progress report 2021:  
The Commission, in cooperation with the HR/VP, has:  

- 

- 

adopted  and published  online  all  multi-annual indicative  programmes  (MIPs)  for  over 
130 partner countries and regions as well as the Economic and Investment Plans30; 
submitted  in  November  2021  to  the  EFSD+  Strategic  Board  strategic  orientations  and 
areas  of  priority  investment  (investment  windows)  including  Team  Europe  Initiatives 
for the use of the EFSD+ guarantees, which will guide financial institutions to prepare 
proposed investment programmes (PIPs).  

Team Europe initiatives and flagship initiatives and partnerships portal 

Stronger European coordination, essential to  ensure better synergies and efficiencies, will be 
promoted through joint programming and joint implementation. Active coordination among 
Member  States  and  their  DFIs  should  also  go  beyond  the  use  of  EU  funds  and  happen  on  a 
systematic  basis,  also  when  their  own  resources  are  used.  Programming 31  at  country  and 
regional level also includes support to Team Europe Initiatives (TEIs) and flagship initiatives 
(as  per  the  Economic  Investment  Plans,  Global  Gateway  and  the  Africa-Europe  Investment 
Package)  where  the  EU  institutions,  Member  States,  and  European  financial  institutions  work 
together aiming to achieve systemic change in line with the policy first principle and the strategic 
objectives and values of the EU. TEIs link together the EU and  Member States’ programming 
exercises and financial contributions through a coordinated and strategic approach on the ground. 
Under  jointly  agreed  policy  priorities  in  specific  countries  and  world  regions,  TEIs  promote 
coordinated  actions  with  a  transformative  impact  in  partner  countries/regions,  drawing  on 
combined  resources  from  all  the  players.  TEIs  are  fully  embedded  in  the  EU  programming 
documents with a substantial part of the multi-annual budgets dedicated to them.  

29 Contributors,  eligible  counterparts,  partner  countries,  relevant  regional  organisations  and  other  stakeholders  may  be  given 

observer status, where appropriate. 

30 See here: https://ec.europa.eu/international-partnerships/global-europe-programming_en, 

https://ec.europa.eu/neighbourhood-enlargement/funding-and-technical-assistance/neighbourhood-development-and-
international-cooperation-instrument-global-europe-ndici-global-europe_en and https://ec.europa.eu/neighbourhood-
enlargement/enlargement-policy/overview-instrument-pre-accession-assistance_en  

31 Whether joint programming or bilateral programming. Through joint programming, the EU and Member States agree on a 
joint response from the EU and its Member States to the development strategy of the partner country / region, providing an 
immediate opportunity to increase coordination, efficiency and impact. 

10 

 
 
 
 
 
 
                                                           
In line with this approach, in the Neighbourhood and the Western Balkans, the Economic and 
Investment  Plans  for  each  region  developed  after  intense  consultation  with  partner  countries 
and Member States, set out the main goals and flagships with a view to achieving maximum 
impact  in  the  region.  These  have  been  fully  embedded  in  the  bilateral  and  regional 
programming documents for the Neighbourhood and in the IPA III Programming Framework. 

NDICI-Global  Europe  lays  down  the  principle  of  an  open  and  collaborative  financial 
architecture  for  development.  The  Commission  will  capitalise  on  the  long-standing 
experience of eligible Member States’ development finance institutions to ensure the optimal 
use of their broad sectoral and geographical expertise.  

In  addition  to  the  institution-building  tools,  which  enable  knowledge  sharing  between 
national  administrations  under  programmes  such  as  TAIEX  or  Twinning,  the  Commission 
will seek to further support the emergence of partnerships.  

Roadmap:  
The Commission, in cooperation with the HR/VP will:  

-  privilege  flagship  and  Team  Europe  Initiatives or  proposals  built on  a  Team Europe 

- 

- 

approach (including e.g. consortia or investment platforms); 
explore  the  possibility  of  providing  incentives  under  the  EFSD+  to  promote  joint 
proposals submitted by several financial institutions which have a common interest in 
achieving  the  set  policy  objectives,  particularly  including  those  of  smaller  size, 
newcomers  or  those  that  are  not  pillar-assessed  (as  long  as  the  lead  institution  is 
pillar-assessed); 
strengthen institution-building tools under TAIEX and twinning to reinforce capacity 
building in key areas of reform and alignment; 

-  provide increased transparency on Team Europe Initiatives; 
- 

launch a partnerships portal in 2022 to facilitate the matching of demand from partner 
countries with offer from European actors in terms of support. 

Progress report 2021:  
The Commission has:  

- 

- 

- 

- 

started  designing  numerous  Team  Europe  Initiatives  at  national,  regional  and  global 
level  together  with  Member  States,  national  development  finance  institutions,  the 
EBRD and the EIB; 
selected, together with the Member States, the flagship initiatives showcased as part 
of the Global Gateway and the Africa-Europe Investment Package; 
started with Member States to develop  a joint monitoring and reporting mechanism for 
financial contributions to and results of Team Europe Initiatives; 
created a partnerships portal prototype which provides key information about the goods 
and  services  offered  by  EU  and  Member  States’  providers  acting  in  a  Team  Europe 
approach. It will go live in April 2022. 

Towards greater mobilisation of private investments  

Even  before  the  COVID-19  pandemic  set  in,  public  resources  were  far  from  sufficient  to 
address the tremendous SDG funding gap and development finance was increasingly used to 
mobilise the trillions needed. With the crisis, the rising needs and the declining resources, it is 
more  urgent  than  ever  to  mobilise  additional  resources  to  help  partner  countries  meet  their 

11 

 
 
 
 
 
 
 
 
financial needs and reach the SDGs and the Paris Agreement objectives. It is crucial that the 
EU mobilises private sector finance to help finance a green, sustainable and inclusive recovery 
and accelerate progress across the SDGs. Better using official development finance is essential 
to  help  crowd  in  private  finance  and  leverage  capital  markets  in  support  of  the  SDGs  in 
developing countries. In that respect, sustainable finance is key to mobilise international and 
domestic private capital to finance sustainable investments in partner countries. NDICI-Global 
Europe’s  financial  arm  has  been  reinforced,  providing  more  firepower  for  financial 
instruments notably with the External Action Guarantee (EAG) that will cover investments up 
to EUR 53.4 billion, including EUR 40 billion in EFSD+ operations for the period 2021-2027, 
notably  to  help  mobilise  additional  public  and  private  investment.  With  Global  Gateway, 
Europe  will  play  its  full  part  in  narrowing  the  global  investment  gap  and  better  leveraging 
resources  in  support  of  SDG  financing  in  developing  countries,  notably  by  exploring  the 
potential role of other stakeholders, beyond traditional actors in the financing for sustainable 
development landscape.  

Roadmap: 
The Commission will:  

- 

seek  to  leverage  additional  investments  thanks  to  the  blending  opportunities  and 
increased  guarantee  firepower  of  the  EFSD+  and  support  efforts  to  scale  up 
sustainability-related financial instruments in our partner countries; 

-  develop  a  comprehensive  strategy 32  aiming  to  support  low-  and  middle-income 
countries to accelerate the flow of domestic and international private capital towards 
sustainable  investments  in  low-  and  middle-income  countries,  benefitting  from  the 
support of a high-level expert group;  
explore in the context of the Global Gateway strategy the possibility of establishing a 
European Export Credit Facility to complement the existing export credit arrangements 
at Member State level and increase the EU’s overall firepower in this area. 

- 

Progress report 2021:  
The Commission has:  

-  prepared  the  ground  for  the  upcoming  call  for  applications  under  the  new  EFSD+ 
Guarantee  which  will  seek  innovative,  transformational  and  impactful  proposals 
which will be instrumental in leveraging additional funding for partner countries;  
started the negotiations of the guarantee agreements for the EIB exclusive window on 
sovereign  and  non-commercial  sub-sovereign  lending  and  the  2  dedicated  windows 
for commercial sub-sovereign and private sector lending; 

- 

- 

-  proposed  to  the  EFSD+  Strategic  Board  a  dedicated  EFSD+  Sustainable  Finance 
window aimed at supporting sustainability-related financial instruments - in particular 
green bonds - to mobilise private capital at scale whilst delivering development impact; 
started to prepare a mapping of EU financial tools with the view to promote enhanced 
coordination of EU instruments, including potential links to EU export credits; 
started exploring the possibility of establishing a European Export Credit Facility to 
complement  the  existing  export  credit  arrangements  at  Member  State  level  and 
increase  the  EU’s  overall  firepower  in  this  area,  helping  to  ensure  a  more  level-
playing  field  for  EU  businesses  in  third-country  markets,  and  thus  facilitating  their 
participation in infrastructure projects. 

- 

32 As announced in the Strategy for Financing the Transition to a Sustainable Economy, published on 6 July 2021. 

12 

 
 
 
 
                                                           
Improved legal framework and procedures to deliver more effectively  

Through  NDICI-Global  Europe,  the  EU  legal  framework  for  external  action  has  been 
significantly  streamlined  and  will  be  essential  in  delivering  an  enhanced  European  financial 
architecture for development. The Regulation brings together several financing instruments and 
modalities (that had different governance mechanisms and different legal bases in the previous 
programming period33) under one single legal framework and governance mechanism. The 
previous set-up had resulted into a fragmentation of external actions that had made it difficult to 
ensure  synergies  and  coherence  of  financial  instruments.  The  new  framework  simplifies  the 
implementation of investment support,  by providing a  coherent  set  of  rules, procedures and 
governance,  creating  a  level-playing  field  for  bilateral  and  multilateral  development  finance 
institutions.  The  Commission  is  also  working  on  several  new  initiatives  to  make  it  easier  for 
partner  institutions  to  apply  for  support  under  EFSD+,  thereby  supporting  inclusiveness 
objectives. 

Furthermore,  the  NDICI-Global  Europe  regulation  sets  up  an  independent,  impartial, 
inclusive and transparent risk management system via the Guarantee Technical Assessment 
Group  plus  (GTAG+),  open  to  experts  from  partner  institutions  and  interested  Member 
States,  organised  and  led  by  the  Commission.  Risk  assessment  and  remuneration 
methodologies shall be consistently applied to all investment windows. GTAG+ will foster a 
common understanding  among financial institutions about  the risk  assessment methodology 
and  its  underlying  assumptions,  thus  improving  the  overall  transparency  and  ultimately  the 
efficiency of the risk management process.  

Finally,  NDICI-Global  Europe  and  IPA  III  include  provisions  for  reinforced  monitoring 
and  reporting.  Monitoring  of  results  based  on  evidence  as  well  as  evaluations  may  also 
support  communication  and  visibility  according  to  the  priorities  identified  in  the  strategic 
plans at country, regional and global level. 

33 In  the  multiannual  financial  framework  for  2014-2020,  the  'Global  Europe'  heading  was  implemented  through  several 

financing instruments. They include:  

• Regulation (EU) 2015/322 on the implementation of the 11th European Development Fund;  
• Regulation (EU) 230/2014 establishing the Instrument contributing to stability and peace;  
• Regulation (EU) 232/2014 establishing the European neighbourhood instrument;  
• Regulation (EU) 233/2014 establishing the development cooperation instrument;  
• Regulation (EU) 234/2014 establishing the partnership instrument for cooperation with third countries;  
• Regulation (EU) 235/2014 establishing the European instrument for democracy and human rights; 
•  Regulation  (EU)  2017/1601  establishing  the  European  Fund  for  Sustainable  Development,  the  EFSD  Guarantee  and  the 

EFSD Guarantee Fund;  

• Decision (EU) 2018/412 amending Decision No 466/2014/EU granting  an EU  guarantee to the European Investment Bank 

against losses under financing operations supporting investment projects outside the Union (External Lending Mandate); 

• Regulation (EU) 2018/409 amending Council Regulation 480/2009 establishing a Guarantee Fund for External Action. 

13 

 
 
 
 
 
 
 
                                                           
Roadmap: 
The Commission will:  

-  establish  a  new  regulatory  framework  with  a  coherent  and  simplified  set  of  rules  and 

procedures to facilitate support to investments; 

-  establish  an  enhanced  risk  management  capacity  (the  Guarantee  Technical  Assessment 
Group Plus, GTAG+), based on systems and methodologies that are open and transparent 
for partner financial institutions; 

-  monitor  the  milestones  and  results  of  its  investment  operations  in  accordance  with  its 
NDICI-Global Europe Performance Monitoring System (part of the broader NDICI-Global 
Europe monitoring and evaluation framework) and the IPA III Performance Framework. 

Progress report 2021:  
The Commission has:  

-  adopted  in June  the NDICI  – Global  Europe regulation, simplifying the  rules  and thus 

facilitating implementation of investment support through the EFSD+ guarantee; 

-  established appropriate structures for risk management, consisting of: 

o 

a Risk Management Unit, acting as the GTAG+ and holding overall responsibility 
for ensuring sound and independent risk management of the EFSD+; 

o  within the GTAG+, an independent and inclusive Guarantee Expert Group (GrEG), 
open to the participation of risk  experts  from  financial institutions and interested 
Member  States  and  in  charge  of  assessing  and  monitoring  the  risk  profile  of  the 
individual guarantee programmes; 

- 

launched a NDICI-Global Europe Performance Monitoring System34.  

While  NDICI-Global  Europe  is  at  the  heart  of  improvements  to  the  current  financial 
architecture,  the  Commission  will  implement  additional  actions  to  deliver  stronger  impact 
and enhance policy steer, coordination, inclusiveness and visibility. 

2.2.2  Measures to affirm a strong EU policy steer 
This  section  presents  additional  actions  aimed  at  strengthening  the  “EU  policy  steer”,  in 
addition  to  those  mentioned  in  the  section  related  to  the  NDICI-Global  Europe  and  other 
strategic documents. 

Speaking with one voice in multilateral finance institutions 

Within the EU, as far as Council formations are concerned, the Commission and the HR/VP 
support  the  request  voiced  by  several  Member  States  that  Council  discussions  on 
development  finance  should  involve  the  two  relevant  configurations:  the  Economic  and 
Financial  Affairs  Council  (ECOFIN)  and  the  Foreign  Affairs  Council  (FAC  -  development 
formation).  This  would  ensure  that  all  the  relevant  angles  (financial  sustainability,  foreign 
policy and the development impact) are taken into account on issues related to development 
finance and would facilitate the building of an EU position. This can help speaking with one 
common position in multilateral financial institutions. This is all the more significant with the 
launch of Global Gateway, which seeks to ensure a horizontal approach to implementing the 
EU’s  strategic  priorities  through  support  for  investment  in  third  countries  –  covering  both 
development and non-development assistance. 

34 Commission  Staff  Working  Document  on  Launching  the  Global  Europe  Performance  Monitoring  System  containing  a 

Revised Global Europe Results Framework, 25 January 2022, SWD(2022) 22 final. 

14 

 
 
 
 
 
                                                           
At  international  level,  it  is  essential  to  ensure  an  efficient,  coordinated  and  coherent 
communication  of  EU  political  priorities  in  the  fora  and  bodies  where  multiple 
European  actors  are  represented. The EU and its Member States  should speak  as  one in 
order to maximise its impact and leverage. The EU should continue to foster partnerships with 
a variety of European and international financing institutions on a broad reform agenda and 
key political priorities. Likewise, common positions should be sought on the strategic plans of 
all multilateral development banks which have EU Member States as shareholders.  

Roadmap: 
The Commission will:  

- 

further explore opportunities for coordination between the EU and its Member States 
to ensure the promotion of EU values and strategic objectives, as well as the building 
of  common  positions  in  international  and  multilateral  finance  institutions.  To  that 
effect,  the  Commission  will  draw  on  existing  experiences  of  coordination  with 
European  executive  Directors  at  the  International  Monetary  Fund  (IMF),  the  World 
Bank Group (WBG) and the EBRD. 

Progress report 2021:  
The Commission has:  

-  provided  inputs  ahead  of  Board  meetings  and  held  coordination  meetings  with  EU 
Executive  Directors  at  the  World  Bank  Group,  EBRD  and  the  IMF  respectively, 
seeking common positions on many issues.  

2.2.3  Measures to promote enhanced coordination 
This  section  presents  additional  actions  aimed  at  strengthening  coordination  between 
stakeholders  of  the  European  financial  architecture  for  development,  beyond  those  already 
mentioned in the section related to the NDICI-Global Europe and other strategic documents. 

Strengthened coordination at country and regional level 

In  line  with  the  strengthened  focus  on  a  geographical  approach,  country  or  regional 
specificities (including debt sustainability issues, for instance) need to be taken into account 
when  taking  decisions  on  projects  to  be  covered  through  financial  instruments,  the  type  of 
investments needed and the financial institution(s) to involve. Promoting closer coordination 
at country and regional level will hence be crucial.  

Building on their local expertise, EU Delegations should have a central role in shaping Team 
Europe  initiatives  and  other  joint  cooperation  activities  in  EU  partner  countries  and 
supporting  specific  policy  reforms.  European  development  actors  and  financing  institutions 
should  notably  rely  more  extensively  on  EU  Delegations  when  building  pipelines  of 
investment  projects  that  can have  a transformative development  impact.  Upstream  dialogue 
between  EU  delegations  and  key  development  actors  will  also  reinforce  country-level  joint 
programming and implementation with European partners.  

Beyond financial instruments, and in order to step up capacity building in partner countries, 
technical  assistance  will  also  be  enhanced,  including  through  the  mobilisation  of  European 
public  sector  expertise  notably  to  support  partner  country  administrative  and  regulatory 
reforms and to encourage adherence to European and international standards.  

15 

 
 
 
 
 
 
 
 
 
 
Roadmap: 
The Commission, in coordination with the HR/VP, will:  

- 

- 

further  strengthen  the  role  of  EU  Delegations  as  coordinators/focal  points  in  order  to 
facilitate upstream discussions with Member States, their financing institutions and other 
stakeholders on the ground, and to reinforce cooperation at the national and regional level; 
explore the possibility of establishing technical assistance facilities, implemented by 
different development finance institutions working jointly where possible, to support 
the  design  of  bankable  projects  in  developing  countries  and  the  creation  of  a 
conducive private sector environment; 

-  organise  regular  coordination  meetings  at  regional/sub-regional/country  level  with 
the  participation  of  EU  Delegations  and  relevant  development  finance  institutions 
and headquarters/capitals; 
continue to organise joint missions and country days in some regions. 

- 

Progress report 2021:  
The Commission has:  

- 

increased  the  level  of  interaction  between  EU  Delegations  and  financial  institutions 
including through consultations during the programming stage and through common 
efforts to create pipelines of bankable projects;  

-  held regular coordination meetings with financing institutions (and EU Delegations) 
by  regions  /  countries,  covering  policy  priorities,  policy  dialogue  on  reforms  with 
partner  countries  and  blending  and  guarantee  operations  pipeline  reviews  (as 
provided in all guarantee agreements); 
launched the technical assistance component of the new Latin America and Caribbean 
Investment Facility; 
started a training campaign for EU Delegations staff to embed discussions on EFSD+ 
within their broader work; 

- 

- 

-  organised joint missions and country days in some African countries (e.g. Togo, Côte 
d’Ivoire) and the Neighbourhood (particularly in the East) and Enlargement regions; 
-  held the first meetings in the context of the Western Balkans Investment Framework 

for implementation of EFSD+.  

Extended dialogue and cooperation with non-European financial institutions  

Successful global engagement also means that the EU must extend dialogue and cooperation 
to  non-EU  development  banks  and  deepen  partnerships  and  alliances  with  stakeholders 
beyond the EU. 

Roadmap: 
The Commission will:  

-  hold  high-level  dialogues  with  international  financial  institutions  beyond  the  EU 
sphere, such as the Deep Dive dialogue with the World Bank Group, or other high-
level  meetings  with  or  the  International  Monetary  Fund,  the  African  Development 
Bank, Asian Development Bank, Inter-American Development Bank; 
explore potential areas of cooperation  with  other international  development  finance 
institutions  (e.g.  Nordic  Development  Fund,  Islamic  Development  Bank,  Arab 
Coordination Group, among others). 

- 

16 

 
 
 
 
 
 
 
Progress report 2021:  
The Commission has:  

- 

continued  the  dialogue  with  other  financial  institutions,  beyond  those  already  pillar 
assessed,  including  the  Banque  Ouest-Africaine  de  Développement,  the  Asian 
the  Islamic 
Infrastructure  Investment  Bank, 
Development  Bank,  the  Arab  Coordination  Group,  the  Central  American  Bank  for 
Economic  Integration,  the  Caribbean  Development  Bank,  the  Inter-American 
Development Bank and the Development Bank of Latin.  

the  Asian  Development  Bank, 

2.2.4  Measures to build a more inclusive financial architecture 
This  section  presents  additional  actions  aimed  at  enhancing  inclusiveness  in  the  financial 
architecture  for  development  beyond  those  already  mentioned  in  the  section  related  to  the 
NDICI-Global Europe and other strategic documents. 

The  Commission’s  ambition  is  to  achieve  an  inclusive  and  integrated  system,  in  which  all 
actors can participate with their tools and expertise to boost public funding, bring in private 
investors and enhance capacity building and technical assistance. 

A better flow of information and regular exchanges as proposed in the coordination section will 
contribute  to  paving  the  way  for  greater  inclusiveness,  ensuring  that  all  Member  States  and 
their  development  actors  are  aware  of  investment  options  and  that  the  most  efficient  mix  of 
tools and actors is used to achieve higher impact on the ground. 

Ensuring inclusive discussions at all levels  

All  stakeholders  –  and  notably  the  Commission,  Member  States  development  representatives, 
European  multilateral  and  bilateral  financial 
institutions  and  development  cooperation 
organisations – will regularly take stock of progress made on improving the European financial 
architecture  for  development.  This  will  ensure  greater  inclusiveness  by  bringing  together  all 
Member  States  development  representatives,  European  multilateral  and  bilateral  financial 
institutions and development cooperation organisations, together with the Commission.  

Beyond high-level stock-taking and steering discussions, inclusive coordination needs to be 
strengthened at technical level on horizontal issues.  

Roadmap: 
The Commission will:  

-  make  sure  strategic  aspects  related  to  the  European  financial  architecture  for 
development are discussed in the framework of the EU Development Directors-General 
meetings which is an inclusive forum35, as often as needed and at least once a year and 
similarly  that  technical  issues  are  discussed  in  inclusive  technical  meetings  (e.g. 
simplification of application forms for EFSD+ funding36, cooperation arrangements, co-

35 The forum is comprised of the Directors-General in charge of development from all Member States as well as the relevant 
Commission  Directors-General  for  International  partnerships,  for  Neighbourhood  and  Enlargement  negotiations,  for 
European Civil Protection and Humanitarian Aid Operations and the Secretary General of the European External Action 
Service.  In  an  enlarged  Team  Europe  format,  it  also  comprises  senior  management  of  Member  States’  development 
agencies and Member States’ financial institutions as well as the EIB, the EBRD. 

36 Simplified forms of financing should still comply with the principle of sound financial management and in particular the 

principles of economy, efficiency and no double funding should be ensured. 

17 

 
 
 
 
 
 
 
 
 
                                                           
financing,  harmonised  strategies,  mutual  reliance  and  recognition  procedures, 
environmental, social and governance matters etc.). 

Progress report 2021:  
Commission services have:  

-  discussed  with  EU  Directors-General  for  Development  at  their  meeting  held  on  5 
October  the  changes  needed  to  re-design  and  enhance  the  European  financial 
architecture for development; 

-  held  a  technical  session  on  9  December  2021  with  partner  financial  institutions, 

focusing inter alia on the EFSD+ Guarantee application process. 

Enhanced support on pillar assessments 

The Commission very much values the possibility for all European financial institutions to play 
their role in the financial architecture for development. It has to be noted that pillar assessment is 
not a pre-requisite to participate in joint investments (such as TEIs), and, as mentioned above, the 
Commission will explore the possibility of providing incentives to privilege joint proposals with 
non-pillar-assessed European entities (as long as the lead entity is pillar-assessed). 

Roadmap: 
The Commission will:  

- 

continue  assisting  and  providing  methodological  advice  to  European  financial 
institutions undergoing the pillar assessment process. 

Progress report 2021:  
The Commission has:  

-  provided  methodological  advice  to  7  European  DFIs  undergoing  complementary 
pillar assessments and 2 new applicant DFIs, including through dedicated information 
meetings and eligibility checks for new applicants. 

2.2.5  Measures to increase EU visibility and influence 
This  section  presents  additional  actions  aimed  at  strengthening  communication  and  overall 
EU  visibility,  beyond  those  already  mentioned  in  the  section  related  to  the  NDICI-Global 
Europe and other strategic documents. 

Enhancing communication efforts in a Team Europe approach  

So  as  to  increase  visibility  of  the  EU  and  Member  States’  development  actions  both 
worldwide  and  locally,  and  ensure  that  Europe  is  perceived  as  a  global  influential  actor 
matching  the  importance  of  its  financial  intervention,  it  is  essential  that  actors  of  the 
European financial architecture for development join forces in their communication efforts.  

With  the  emergence  of  new  donors,  it  is  important  to  be  able  to  accurately  showcase  the 
extent  of  European  support  to  partner  countries.  Communicating  efficiently  on  the  overall 
support mobilised by the EU and its Member States will require overcoming the scarcity of 
comparable data across Member States and European financial institutions.  

18 

 
 
 
 
 
 
 
 
 
 
 
 
The  Team  Europe  approach  will  be  a  central  part  of  the  EU  strategic  communication  and 
public  diplomacy  efforts,  both  globally  and  at  country  and  regional  levels.  In  that  regard, 
TEIs  can  provide  a  useful  and  visible  opportunity  to  frame  communication  efforts.  For  the 
Neighbourhood and the Western Balkans, the narrative will be focused on the Economic and 
Investment Plans as the key tools to deliver in a Team Europe approach.  

Roadmap: 
The Commission, in cooperation with the HR/VP, will:  

- 

explore the possibility of developing together with  Member States and DFIs  a joint 
reporting  framework  for  EU  and  Member  States’  development  finance  operations 
across  the  world  on  a  yearly  basis,  so  as  to  present  aggregate  consolidated  and 
comparable EU and Member States development finance figures and achievements in 
support of strategic communication priorities;  

-  prepare country strategic communication plans in partner countries bringing together 
strategic communications activities and public diplomacy activities to build long-term 
network, to showcase the EU values and principles, as well as the scale and scope of 
European engagement to local audiences; 

-  provide  further  communication  guidance  and  communication  materials  to  the  EU 
Delegations, Member States and European financial institutions on the Team Europe 
approach  that  can  be  used  in  their  communication  activities  (e.g.  EU  and  Member 
States success stories acting in a Team Europe approach illustrating why we act and 
what we stand for (local angle, common values, human-centred approach); 
coordinate  with  the  participating  EU  financial  institutions  and  Member  States  the 
announcement  of  new  operations  in  a  Team  Europe  approach  through  news  (press 
releases  or  social  media  channels)  and  joint  participation  where  suitable  in  the 
signature ceremonies of the operations included in portfolios covered by the EFSD+ 
Guarantee; 

- 

-  develop  a  clear  web  presence  for  all  EU-funded  projects  using  blended  finance, 

budgetary guarantees and technical assistance. 

Progress report 2021:  
The Commission, in cooperation with the HR/VP, has:  

- 

enhanced coordination in communication including through: 
o 

o 

o 

a joint mission of high-level Commission officials and public development banks 
to Togo in November 2021; 
announcements of Team Europe Initiatives in the presence of representatives of the 
EU and of all participating Member States (e.g. TEIs on vaccines manufacturing, 
on Investing in Young Businesses in Africa, on the Green TEI in partnership with 
South East Asia or on the Global Team Europe Democracy initiative);  
signature  ceremonies  in  the  presence  of  EU,  Member  States  and  financing 
institutions  representatives  (for  instance  the  Water  and  Natural  Resources 
Management Facility for flood prevention in Dien Bien Phu city in Vietnam);  

-  provided  guidance  and  templates  in  terms  of  strategic  communication  and  public 

diplomacy to EU Delegations to support the elaboration of their strategic plans; 
o 

reviewed  its  entire  web  landscape  on  development  cooperation  in  order  to  ensure 
that the Team Europe approach and the TEIs impact is fully reflected on the external 
website. 

19 

 
 
 
 
 
3.  CONCLUSION 

Swift, coordinated and ambitious action is needed to ensure the European financial architecture 
for development is improved and delivers the desired impact, both for the EU and its partners.  

The Team Europe response to the COVID-19 crisis has shown that the EU, its Member States 
and  their  financial  institutions  are  stronger  when  they  work  together  and  follow  common 
objectives. The financial architecture needs to build on this approach, to ensure that financial 
partners  and  relevant  stakeholders  share  information  in  a  timely  manner  and  work  together 
from the provision of technical assistance to project origination and pre-appraisal through to 
evaluation, building on their respective country, sector or financial expertise. Their action is 
to  be  guided  by  common  objectives,  under  a  strong  EU  political  steer.  This  will  also  bring 
visibility and recognition to the EU as a key international partner. 

The  active  participation  and  efforts  of  all  partners  involved  is  crucial  to  optimise  the 
European financial architecture for development, improve cooperation, maximise impact and 
ensure that the EU is duly recognised as an essential global player. The Commission and the 
HR/VP are ready to play a central role in this endeavour in close partnership with all European 
stakeholders and has already started to implement its proposed actions for improvement. 

20 

 
 
 
 
 
 Annex: Actors of the European financial architecture for development 

Member-States 
Austria 
Belgium 
Bulgaria 

Croatia 

Cyprus 
Czech Republic 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 
Lithuania 
Luxembourg 
Malta 

Netherlands 

Poland 

Portugal 
Romania  
Slovakia 

Slovenia 

Spain 

Sweden 

Non-EU countries 

Norway 

Switzerland 

UK 

PDBs 
AWS 

DFIs 
OeEB 
BIO 

AFD 

KfW 

CDP 

National Development Bank (NDB)  
IFU 
(NDF) Nordic Development Fund 
(NIB) Nordic Investment Bank 
NIB 
Finnfund 
NDF 
NIB 
Proparco 

DEG 

EXIM Hungary 

SIMEST 

NIB 
NIB 

FMO 

SOFID 

EXIMBANKA SR  

COFIDES 

Swedfund 
NDF 
NIB 

NIB 
Norfund 
SIFEM 

CDC 

Development Agency 
ADA 
Enabel 
Global Affairs General Directorate- MFA 
Directorate-General for Economic Affairs and 
Development Cooperation - MFEA 
MFA 
CzechAid 

Danida - MFA 

MFA 

Fi MFA 

AFD 
Expertise France - MFA 
GIZ 
Hellenic Aid - Directorate General of International 
Development Cooperation - MFA 
MFAT 
Hungary Helps Agency - Prime Minister 
coordination 
IrishAid - Department of MFA 
AICS 
IT MFA 
MFA 
CPMA 
LuxDev 
Ministry for Foreign and European Affairs 
SNV 
NL MFA 
PolishAid - Department of Development 
Cooperation - MFA 
Camões 
RoAid 
SAIDC - SlovakAid 
Department for Development Cooperation and 
Humanitarian Assistance - MFA 
AE  CID 
FIIAPP 

SIDA 

NORAD 

SDC 
DFID (FCDO) 
British Council 

Members of the enhanced partnership 

Members of the EDFI Association 

Members of the Practitioners' Network 

Multilateral development banks: European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) 

Global/regional/international banks: World Bank Group (WBG), African Development Bank (AfDB), Asian Development 
Bank (ADB), Inter-American Development Bank (IDB), etc. 

21