The Future of the European Finanical Architecture for Development

Under the Team Europe framework, the European Architecture for Development (EFAD) has undergone changes aimed at improving capacity through enhanced synergies and political steering. Although the Team Europe approach emerged as a response to the COVID-19 crisis, it has overlapped with an intense debate on the fragmentation of the EFAD; the entry into force of the new multiannual financial framework, the enhancement of the EU External Investment Plan and other political factors that have provided momentum to the old idea of better working together.

This ongoing evolution is the topic of continuing discussion and review, including by the European Parliament’s Committee on Development (DEVE), who will hold a workshop on The Future of the European Financial Architecture for Development on 7 February 2022. The workshop will be attended by two experts in the field, Dr Mikaela Gavas, Senior Policy Fellow at the Centre for Global Development and Dr Aitor Pérez, Economist and Political Scientist and Chief Consultant at ECOPER. According to the programme, the experts will examine the state of play and the decision made by the Council to pursue the ‘status quo +’ option, as well as other future options and scenarios, such as the establishment of an European Climate and Sustainable Development Bank, and provide recommendations on the best way forward, including on the roles of the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and EU Member States’ development finance institutions, also in the context of the Team Europe approach, and implementation of the NDICI-Global Europe regulation. The discussion will be informed by the paper ‘A new European financial architecture for development: What roles for the EIB, EBRD and member states’ DFIs?’ which was recently written by Aitor Pérez at the request of DEVE.