EU’s Financial Instruments for Development

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The EU sits at the center of the European development finance system with its multiple grant and risk-sharing tools provided through:

  1. the External Investment Plan which aims at fostering cooperation and pooling investment amongst all actors, including its financial arm, the European Fund for Sustainable Development, connecting blended finance and guarantees;
  2. the single and flexible Neighborhood, Development and International Cooperation Instrument (NDICI)-Global Europe and its open financial architecture with blended finance and guarantee tools through the successor to the EFSD, the EFSD+; and
  3. the ‘Team Europe’ approach, a potentially powerful coordination framework at EU level and with European partners

CGD analyzes the effectiveness of the EU’s development finance approach and instruments, informing their design, allocation, and deployment to ensure maximum development impact.