Increased efficiency of the External Action Guarantee

Amendments tabled for the plenary sitting on this text, in their own numbering series. This is a different set from the committee amendments tracked elsewhere on AmendEU, and is not counted in any of the site’s amendment totals.

1. Amendment 1Proposal for a regulation · Recital -1 (new)
   Amendment

   (-1) The Union’s external financing instruments, including the EFSD+, continue to be guided by the Union’s foreign policy objectives as set out in Article 21 of the Treaty on European Union, notably the promotion of democracy, the rule of law, human rights and respect for the principles of the United Nations Charter, while also reinforcing the Union’s capacity to act as a global strategic player , safeguarding partners’ sovereignty, countering external interference, and strengthening resilience to geopolitical and economic shocks. Measures to enhance the efficiency of the External Action Guarantee should be pursued in a manner fully consistent with those objectives while ensuring greater ali…

   Excerpt — full text in the official PDF.
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2. Amendment 2Proposal for a regulation · Recital 1
   Current text

   (1) The global geopolitical and geoeconomic context requires that the Union reaffirms its commitment to establish mutually beneficial partnerships with partner countries.

   Amendment

   (1) The global geopolitical and geoeconomic context requires that the Union reaffirms its commitment to establish mutually beneficial partnerships with partner countries, in order to consolidate democratic institutions and strengthen regional stability and security, thereby tackling the root causes of migration and human trafficking. At the same time, such partnerships should aim to diversify supply chains and uphold the rules-based international order, taking into account factors such as stances towards Russia’s war of aggression against Ukraine, thereby fostering sustainable prosperity and advancing human development. Concrete action to face challenges related to climate change, biodiversi…

   Excerpt — full text in the official PDF.
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3. Amendment 3Proposal for a regulation · Recital 1 a (new)
   Amendment

   (1a) The Union’s strategic ambitions under Regulation (EU) 2021/947 of the European Parliament and of the Council require not only financial and technical delivery but also strong public and diplomatic visibility in order to maximise geopolitical impact and citizen engagement. The Union and its Member States collectively remain the world’s largest providers of official development assistance. That fact, however, is not sufficiently visible, especially when using indirect management with implementing partners such as blended finance operations with many stakeholders within the EFSD+. Accordingly, communication regarding Union-funded actions should be strengthened and greater coherence between…

   Excerpt — full text in the official PDF.
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4. Amendment 4Proposal for a regulation · Recital 2
   Current text

   (2) The Draghi report recommends ensuring a greater involvement of the private sector and to reduce excessive external dependencies by securing supply of raw materials, clean energy, sustainable transport fuels, and clean tech from across the world, thereby upgrading and leveraging the Global Gateway1 as well as the growth plans for the enlargement countries, which require additional resources. __________________ 1 “The Global Gateway”, Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, JOIN(2021) 30 final, 1.12.2021

   Amendment

   (2) The Draghi report recommends ensuring greater involvement of the private sector. The report further advises to reduce excessive external dependencies by securing supply of raw materials, clean energy, sustainable transport fuels, and clean tech from across the world, thereby upgrading and leveraging the Global Gateway1 as well giving specific priority to the growth plans for the enlargement countries, which require additional resources. At the same time, the challenges related to the growing reliance on private financing to tackle global development shortfalls must be taken into account. The report further highlights the need to accelerate efforts to reduce reliance on Russian energy and…

   Excerpt — full text in the official PDF.
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5. Amendment 5Proposal for a regulation · Recital 3
   Current text

   (3) In addition to a more focused approach to enlargement, the political guidelines of the 2024-2029 Commission recognise the importance of a more focused approach to our wider neighbourhood, especially the Middle East, North Africa and the Gulf. The strategic relevance should be supported by concrete projects and strategic investments, both a regional level, e.g. T-MED, and at bilateral level through the implementation of the Strategic Partnerships. Depending on the evolution of the situation on the ground, additional resources could also be needed to maintain stability and support early recovery/reconstruction among key partners in the Middle East.

   Amendment

   (3) In addition to a more focused approach to enlargement, the political guidelines of the 2024-2029 Commission recognise the importance of a more focused approach to our wider neighbourhood, especially the Middle East, North Africa and the Gulf as well as Central Asia and the Southern Caucasus. The strategic relevance should be supported by concrete projects and strategic investments, both at regional level, e.g. T-MED, and at bilateral level through the implementation of Strategic Partnerships. Depending on the evolution of the situation on the ground, additional resources might also be required to maintain stability and support early recovery among key partners in the Middle East.

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6. Amendment 6Proposal for a regulation · Recital 3 a (new)
   Amendment

   (3a) The political guidelines also set the goal of creating long-term, mutually beneficial partnerships and recognise the need for a new impetus in Union’s partnership with Africa. Furthermore, Article 6(2), point (a), of Regulation (EU) 2021/947 of the European Parliament and of the Council stipulates a minimum financial envelope for Sub-Saharan Africa which is currently not being attained.

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7. Amendment 7Proposal for a regulation · Recital 3 b (new)
   Amendment

   (3b) In partner and enlargement countries, Union financial support under the External Action Guarantee should explicitly promote reform in the areas of rule of law, democratic governance and the fight against corruption, thereby underpinning credibility and public trust in the accession processes.

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8. Amendment 8Proposal for a regulation · Recital 3 c (new)
   Amendment

   (3c) It is essential that the External Action Guarantee strengthens the human development dimension, ensuring that supported projects have a positive impact on education, health, social inclusion and poverty reduction in partner countries, in line with the UN 2030 Agenda. To that end, the implementation of the External Action Guarantee should promote local ownership and ensure complementarity with the national development strategies of partner countries, while adopting a differentiated approach that reflects the specific needs, vulnerabilities and development priorities of low- and middle-income countries.

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9. Amendment 9Proposal for a regulation · Recital 4
   Current text

   (4) An important Union financing instrument to deliver on the Global Gateway objectives and the strategic investments is the European Fund for Sustainable Development Plus (EFSD+), and notably its budgetary guarantee, a component of the External Action Guarantee established by Regulation (EU) 2021/947 of the European Parliament and of the Council2 . Efficiency gains on the External Action Guarantee would allow funding EU external action priorities, including possibly scaling up the Global Gateway. __________________ 2 Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Glo…

   Amendment

   (4) An important Union financing instrument to deliver on the Global Gateway objectives and the strategic investments is the European Fund for Sustainable Development Plus (EFSD+), and notably its budgetary guarantee, a component of the External Action Guarantee established by Regulation (EU) 2021/947 of the European Parliament and of the Council2. Efficiency gains on the External Action Guarantee would allow funding EU external action priorities, including possibly scaling up the Global Gateway, taking into account that the EFSD+ requires additional effort from Union delegations to deal with guarantee operations. In those operations, attention is expected to be paid to the specific investme…

   Excerpt — full text in the official PDF.
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10. Amendment 10Proposal for a regulation · Recital 4 a (new)
    Amendment

    (4a) The EU and beneficiary partners should ensure that Chinese companies and entities do not secure funds under the EFSD+, particularly where such companies are associated with the Chinese Belt and Road Initiative or owned by the Chinese state or influenced by the Chinese Communist Party.

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11. Amendment 11Proposal for a regulation · Recital 5 a (new)
    Amendment

    (5a) In view of the negotiations on the post-2027 multiannual financial framework, in line with Article 42(5) of Regulation (EU) 2021/947 and following the recommendation of ECA Opinion 03/2024, the Commission should consider preparing an evaluation of the External Action Guarantee, with emphasis not only on the use of the Guarantee but also on project delivery and impact on the ground, including the Guarantee’s contribution to the overarching objectives of the Neighbourhood, Development and International Cooperation Instrument (NDICI). The Commission should apply the lessons learnt to its next proposals. It should in particular evaluate whether the current maximum guarantee capacity and the…

    Excerpt — full text in the official PDF.
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12. Amendment 12Proposal for a regulation · Recital 5 b (new)
    Amendment

    (5b) While efficiency and simplification of procedures for implementing partners are necessary, they must be accompanied by enhanced transparency and accountability in the financing of the EU’s external actions. Reporting obligations should therefore continue to provide clear information on risk exposure, development impact and the geopolitical relevance of the operations concerned. The European Parliament should receive a detailed annual report on the use of resources from the EFSD+ guarantee including a breakdown by sectors and regions, the impact on the sustainable Development goals and the level of participation of civil society organisations.

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13. Amendment 13Proposal for a regulation · Recital 6
    Current text

    (6) The guarantee cover of EFSD+ could be increased until 2027 with surpluses from the European Sustainable Development Fund (EFSD) and by using more efficiently the Union guarantee by reducing its EU liability under the EIB’s exclusive dedicated investment window for operations with sovereign counterparts and non-commercial sub-sovereign counterparts from 65 % to 60 %. The latter would only come into effect after amending the corresponding guarantee agreement between the Commission and the EIB. The assignment of surpluses from legacy instruments to the benefit of EFSD+ is without prejudice to the negotiations on the post-2027 multiannual financial framework.

    Amendment

    (6) The guarantee cover of EFSD+ could be increased until 2027 with surpluses from the European Sustainable Development Fund (EFSD) and by using more efficiently the Union guarantee by reducing its EU liability under the EIB’s exclusive dedicated investment window for operations with sovereign counterparts and non-commercial sub-sovereign counterparts from 65 % to 60 %. The latter would only come into effect after amending the corresponding guarantee agreement between the Commission and the EIB. The assignment of surpluses from legacy instruments to the benefit of EFSD+ is without prejudice to the negotiations on the post-2027 multiannual financial framework. At the same time, the increased…

    Excerpt — full text in the official PDF.
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14. Amendment 14Proposal for a regulation · Recital 8 a (new)
    Amendment

    (8a) The reassignments of the EFSD guarantee surpluses are particularly pertinent in view of the Union’s geostrategic interests and the stability of partner countries, as well as the increased scarcity of resources to fund development cooperation and humanitarian aid.

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15. Amendment 15Proposal for a regulation · Recital 9
    Current text

    (9) The capacity of the EIB, the EBRD and the DFIs to efficiently implement additional resources should be increased by the simplification of the framework for blending operations, the consolidation of guarantee and technical assistance agreements with the same implementing partner and the reduction of the financial reporting from a quarterly frequency to a semi-annual one.

    Amendment

    (9) The capacity of the EIB, the EBRD and the DFIs to efficiently implement additional resources should be increased by the simplification of the framework for blending operations, the consolidation of guarantee and technical assistance agreements with the same implementing partner and the reduction of the financial reporting from a quarterly frequency to a semi-annual one. Such simplification is crucial to mobilise private investment at scale, increase the leverage effect of Union funds and create a more predictable environment for private partners willing to co-invest in sustainable development.

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16. Amendment 16Proposal for a regulation · Recital 10 a (new)
    Amendment

    (10a) Article 2(10) of Regulation (EU) 2021/947 provides a precise definition of additionality, a key evaluation requirement for EFSD+. In its Opinion 03/2024, on the Commission’s evaluation of the External Action Guarantee, the European Court of Auditors (ECA) noted that the Commission has yet to demonstrate to what extent the External Action Guarantee has mobilised additional investment beyond what would otherwise have occurred. In future, the Commission should provide clear and regular reporting on the additionality of EFSD+ operations, including evidence that supported portfolios carry a higher risk profile than comparable normal investment activities of implementing partners.

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17. Amendment 17Proposal for a regulation · Recital 10 b (new)
    Amendment

    (10b) Furthermore, the ECA found insufficient evidence that current spending under the EFSD+ contributes to the objectives of Regulation (EU) 2021/947, particularly the eradication of poverty.

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18. Amendment 18AFET, DEVEProposal for a regulation

    Replaces or inserts a longer passage — full text in the official document.

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19. Amendment 19ESNProposal for a regulation · Recital 2 a (new)
    Amendment

    (2 a) The External Action Guarantee should be used for strategic projects in the enlargement region, especially for regional connectivity in the Western Balkans, including the trans-European transport network (TEN-T).

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20. Amendment 20ESNProposal for a regulation · Recital 9
    Current text

    (9) The capacity of the EIB, the EBRD and the DFIs to efficiently implement additional resources should be increased by the simplification of the framework for blending operations, the consolidation of guarantee and technical assistance agreements with the same implementing partner and the reduction of the financial reporting from a quarterly frequency to a semi-annual one.

    Amendment

    (9) The capacity of the EIB, the EBRD and the DFIs to efficiently implement additional resources should be increased by the simplification of the framework for blending operations, the consolidation of guarantee and technical assistance agreements with the same implementing partner and the reduction of the financial reporting from a quarterly frequency to a semi-annual one, without compromising accountability and sound financial management.

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21. Amendment 21ESNProposal for a regulation · Recital 1
    Current text

    (1) The global geopolitical and geoeconomic context requires that the Union reaffirms its commitment to establish mutually beneficial partnerships with partner countries.

    Amendment

    (1) The global geopolitical and geoeconomic context requires that the Union reaffirms its commitment to establish mutually beneficial partnerships with partner countries. Such partnerships should be based on the common interests of Member States and pursued only if the benefits for Member States exceed the costs. Member States should not take on any further common debt in the pursuit of such partnerships.

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