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Wednesday, 29 May 2013

A larger than expected European Development Fund

A larger-than-expected budget of € 29 billion for the European Development Fund (EDF) for the period 2014-2020 was provisionally approved by the members of the foreign affairs Council of the European Union, which met between 27-28 May in Brussels.
Additionally, € 2.5 billion will be made available by the European Investment Bank. This brings the total available EU funding to the ACP states between 2014 and 2020 to € 31.5 billion.
The € 29 billion amount appears higher than the one announced on February 8, in the framework of the agreement on the new EU multi-annual budget (2014-2020), which had been set at € 26, 9 bn.
It is closer to the one initially proposed by the Commission, which earmarked €29.9 billion. In the previous period (2008-2013), the EDF had a budget of €22,7 bn. This implies that the yearly amounts paid out in the next period will be similar to the ones in the previous one, given that its total budget accounts for one extra year.

The ACP-EU Council of Ministers on 6/7 June in Brussels is expected to finalize and adopt this budget.

This is the 11th European Development Fund granted to the ACP countries. The EDF has traditionally been financed outside the EU budget for historical and legal reasons, but its level has been traditionally agreed as part of the overall budget negotiations.

Source: Council of the EU; Euractiv