Summary
The European financial architecture for development (EFAD) aims to improve the coordination, coherence, inclusiveness, visibility and efficiency of European investments outside of the EU, strengthening their policy direction and increasing their impact, particularly in the world’s most vulnerable regions. The need for a stronger EFAD has grown more urgent, as global discussions on issues like climate change, debt crises and food insecurity increasingly highlight the financing gap as a key challenge.
In this paper, we provide a brief overview of Europe’s financial architecture for development, outlining its purpose and objectives in a rapidly evolving context that has introduced new challenges and complexities. We analyse the current state of the EFAD, examining ongoing initiatives and the extent to which it is delivering on its objectives, particularly in terms of inclusiveness, resilience and sustainability. This includes a focus on challenging environments such as fragile countries and least-developed countries. We conclude by outlining key issues and recommendations to ensure that the EFAD is fit for purpose and delivers impactful and transformative investments in partner countries.
About the authors:
Dr San Bilal is a senior executive and associate director of ECDPM’s sustainable economies and climate action cluster. He is also a member of the management team.
Karim Karaki is the head of ECDPM’s economic recovery transformation team.