Can the EU become a better partner and orchestrator in development policy?

Together, the EU27 countries make up the world’s largest international donor in the domain of development assistance. And yet, we find that they systematically punch below their weight. This is due to several factors, including (i) a fragmented institutional landscape at the EU level and imperfect multilevel governance; (ii) limited ability to engage with non-state actors, interact with other donors and mobilise local resources; (iii) a disconnect between the policy dimension and the organisation of development initiatives and programmes; (iv) limited reliance on new forms of governance to tackle mounting global challenges; and (v) the need to adapt existing instruments to the ongoing evolution of the global development landscape. In this report, we compare three scenarios for reform and conclude that continuing with the status quo is not a suitable option if the EU wants to become a stronger actor and more attractive partner at the global level. Instead, we argue that the creation of two new institutions – a European agency for development and cooperation and a European Bank for Climate and Sustainable Development – coupled with suitable governance arrangements, is necessary to address past problems and meet present and future challenges.