The European Commission is increasing the efficiency and firepower of its External Action Guarantee (EAG), a key financial tool under the Global Gateway strategy that offers more affordable loans to unlock investments in partner countries around the world. In an increasingly complex geopolitical context, the EU is reaffirming its role as a global actor by strengthening its strategic and responsive capabilities. The EAG supports initiatives such as financing green hydrogen production in Namibia, connecting Europe with Africa and Asia digitally through submarine cables, developing vaccine manufacturing facilities in Africa or fostering the absorption of carbon dioxide in Amazonian forests. With today’s proposal, the Commission will strengthen this powerful financing tool—boosting the EU’s capacity to deliver aid while better managing financial risks.

Today’s proposal seeks a more dynamic use of EU resources, without requiring additional budget. This objective can be achieved by making targeted amendments to the current rules on EU’s investments in partner countries. The new rules will enable the EU to redistribute fundings more easily between its financing instruments, so that it can maximise the efficiency of EU’s foreign aid. Specifically, more flexible rules will allow transfers of extra funds between different guarantee funds. At the same time, the EU will leverage extra room for investment by lowering the risk coverage of some European Investment Bank (EIB) loans.

In addition, a series of simplification measures are underway to reduce lengthy procedures, so that access to investment under the EAG can take place more quickly. The new measures will allow the EU’s implementing partners, such as the EIB, the European Bank for Reconstruction and Development (EBRD) and other European development financial institutions, work more efficiently by streamlining procedures. In doing so, the EU seeks to accelerate the delivery of Global Gateway impactful projects in partner countries, while also making it easier for European businesses to engage in international cooperation.