The Council Presidency and the European Parliament reached today a provisional political agreement on targeted amendments to the regulation establishing the Neighbourhood, Development and International Cooperation Instrument - Global Europe (NDICI), aimed at increasing the efficiency and effectiveness of the External Action Guarantee (EAG). The EAG is the EU's key instrument for supporting investments outside the Union by reducing financial risks and mobilising public and private financing.

The agreement will enable the EU to use existing resources more effectively and strategically in support of its external action priorities, including the mobilisation of sustainable investment through the European fund for sustainable development plus (EFSD+). It preserves the objectives, principles and safeguards of the NDICI-Global Europe framework, while introducing practical improvements that will allow the EU to respond more rapidly and coherently to global challenges. By simplifying certain procedures and allowing a more flexible use of guarantee resources, the amendments strengthen the EU's ability to deliver development cooperation and external action, manage risks responsibly, and act as a credible and strategic partner in an increasingly competitive global environment.

Main elements of the agreement

The agreement includes the following key elements:

• more efficient use of guarantee resources, as it allows surpluses from the old EFSD guarantee to be used for the provisioning of the EFSD+ budgetary guarantee, increasing the overall guarantee capacity within the current multiannual financial framework (MFF)
• optimisation of risk coverage, with a more efficient use of the EU guarantee under the EIB's dedicated investment window, allowing the guarantee to support more projects
• simplification for implementing partners, streamlining the framework for blending and guarantee operations, including lighter reporting requirements, in order to facilitate faster and more predictable project implementation and to mobilise private investment at scale
• safeguards and alignment with NDICI principles and objectives, including differentiated approaches for fragile contexts and least developed countries and consistency with the EU's external action objectives under the treaties

Next steps

The provisional agreement will now be endorsed by the Council and the Parliament before being formally adopted.

Background

The External Action Guarantee (EAG) is a central component of the NDICI-Global Europe instrument and the broader Global Gateway strategy, underpinning the EFSD+ and enabling the EU to support investment in partner countries through budgetary guarantees. Backed by substantial EU funds (up to €53.4 billion), it acts as a financial cushion, leveraging private funds for investments in areas such as climate, infrastructure and reconstruction, with the EIB playing a key role in operations. Through the EAG, the EU supports a wide range of initiatives, including green hydrogen projects in Namibia, submarine cable links connecting Europe with Africa and Asia, vaccine production in Africa and efforts to enhance carbon absorption in Amazonian forests.

In light of strong demand for EFSD+ operations and evolving geopolitical priorities, in May 2025 the Commission proposed targeted amendments to the regulation establishing the NDICI-Global Europe instrument to improve the efficiency and flexibility of the EAG within the existing budgetary framework.

• Council negotiating mandate
• Commission proposal
• NDICI - Global Europe (European Commission)
• European Fund for Sustainable Development Plus (European Commission)
• Global Gateway (background information)