EU to Restructure Foreign Aid Program to Align with Strategic Interests

2025-02-11 03:19:55

(MENAFN) The European Union is set to review its multi-billion-euro foreign aid program in response to budgetary constraints, rising defense costs, and the threat of potential US tariffs, according to a Bloomberg report.

This decision follows US President Donald Trump’s move to freeze the majority of American foreign aid, citing concerns over corruption and inefficiency within USAID, the primary agency for Political funding abroad. Currently, most US assistance is under a three-month review to ensure it “aligns with American interests.”

Facing similar challenges, the European Commission (EC) is also reevaluating its external aid program amid concerns over its growing budgetary pressures and competing priorities, such as the ongoing conflict in Ukraine. Bloomberg reported that an internal draft document outlines plans to restructure the EU’s approach to foreign aid.

The EU aims to adopt a more transactional approach, using aid to "secure strategic interests," bolster alliances, and ensure access to vital raw materials while maintaining its image as a “reliable partner.”

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