EU: The New Financial Instrument for Development

Real improvements but some dilutions

On the 20 September 2006, after more than two years of negotiations, the European Union (EU) agreed on a Budgetary framework for 2007-2013. This framework, known as Financial Perspectives, is made up of a series of instruments for instance the Development co-operation instrument and the European Neighbourhood and Partnership instrument. The instrument that covers EC financial assistance to developing countries is the Development Co-operation Instrument (DCI). Florent Sebban reports.

A definite political agreement on the financing instrument for development cooperation for the 2007-2013 periodwas reached at the EU Council on 17 October in Luxembourg. The DCI is divided up into geographic funding streams, for example Asia or Latin America and thematic funding streams, for example environment and non-state actors. African, Caribbean and Pacific countries are not part of this instrument as they are dealt with through a different budget called the European Development Fund (EDF). The deal, however, still needs to be rubber-stamped ...

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Posted: 2 Nov 2006

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