Cyprus hails ‘strategic’ agreement to strengthen EU global role
The Council of the European Union and the European Parliament have reached a provisional political agreement on targeted amendments to the NDICI–Global Europe financial instrument, in what marks the first successful trilogue concluded under the Cyprus Presidency.
The agreement is aimed at strengthening the effectiveness of the External Action Guarantee (EAG), allowing the European Union to deploy existing resources in a more strategic and flexible manner, particularly through the European Fund for Sustainable Development Plus (EFSD+), while preserving the framework’s core objectives, principles and safeguards.
According to a statement by the Cyprus Presidency of the Council of the EU, the changes are expected to simplify procedures and improve flexibility in the use of guarantees, enabling the Union to respond more swiftly and coherently to global challenges.
Foreign Minister Constantinos Kombos said the agreement “enhances the effectiveness of the EU’s external investment instruments without changing their mandate and objectives”.
It will, he added, “allow us to mobilise more investment where it is needed most, in full respect of the EU’s values, political objectives and fiscal safeguards”.
Kombos also pointed to the broader geopolitical backdrop, describing the deal as “a concrete, timely and necessary step” that strengthens the EU’s capacity to deliver, while reinforcing its role “as a reliable and strategic global partner”.
Under the agreement, guarantee resources will be used more efficiently, including through the use of surpluses from the previous EFSD to reinforce the EFSD+ guarantee, while risk coverage will be optimised so that EU guarantees can support a larger number of projects.
At the same time, implementing partners are expected to benefit from simplified procedures, lighter reporting requirements and faster project implementation.
The revised framework will continue to align with the principles and objectives of the NDICI–Global Europe instrument, with particular focus on fragile states and least developed countries.
The provisional agreement now requires formal approval by both the Council and the European Parliament before it can be adopted.