Brussels – Today, the European Commission released its proposal following the mid-term review of the EU’s Multiannual Financial Framework. The proposal sets out an additional EUR 10.5 billion for Heading 6, EUR 2.5 for the Solidarity and Emergency Aid Reserve (SEAR) and EUR 3 billion for the Flexibility Instrument.

ONE, Global Citizen and Aidsfonds, reacted: “The reinforcements to the EU’s external budget and proposals to increase flexibility in the budget are welcome as they will potentially free up existing resources for fighting poverty and tackling climate change. However, the significant proportion of funding earmarked for migration should prioritize refugees’ protection, poverty alleviation, and early recovery.

This proposal is a signal that the EU cannot meet its commitments and deliver on its ambitions with the existing level of funding. Fresh resources for Ukraine are much needed, and today’s proposal highlights how quickly and at scale the EU can move. However, even with these increases, the amount foreseen for external action isn’t enough and remains less than the Commission projected was needed in 2020 when it revised its proposals for the long-term budget in the wake of the COVID-19 pandemic. Since then the war in Ukraine has sent devastating aftershocks around the world and the clock is ticking to climate catastrophe. 

We need bold, agile financing at scale to prevent a lost decade when it comes to extreme poverty and inequality. So it is disappointing that the Commission has shied away from key ‘own resources’ proposals that could bring new flows of money to an overstretched external budget. For instance, an EU- wide financial transaction tax could raise between 17 and 29 billion euros per year of much-needed resources for development and climate.

The Paris Summit for a new Global Financing Pact later this week is a golden opportunity for the EU to play a leading role in forging consensus around a new global financing pact. But any credible political commitment must be backed with financial resources.

The European Parliament and Member states can chart a new course and increase external financing for climate and development and, in doing so, ensure that the EU has the means to shape global responses to global challenges.” 

Notes to editors 

• An EU-wide financial transaction tax could raise between 17 billion (with a 0.3% tax) and 26 billion (0.5% tax): The taxation of Financial Transactions: An Estimate of Global Tax revenues (in French).
• For the first time in 32 years, the UN reports health, education and standards of living globally have dropped for two years in a row, falling below 2016 levels, reversing decades of progress. UN Human Development Report 2021- 2022. 
• Read the policy paper Review of the Multiannual Financial Framework signed by 24 CSOs and networks.
• Read ONE & Global Citizen’s blog: The European Union is facing a credibility crisis: Here’s how it can change things