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REPORT (COM(2025)0262 – C100107/2025 – 2025/0262(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/947 as regards increased efficiency of the External Action Guarantee

A-10-2025-0221

Committee on Foreign Affairs Committee on Development · Rapporteur: Charles Goerens, David McAllister

✦ In short · AI summary of this text, generated 4 Sept 2026

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Parliament's amended version of the proposed regulation amending Regulation (EU) 2021/947 to increase the efficiency of the External Action Guarantee. It sets out conditions for using surpluses and reducing the EIB's guarantee cover, while strengthening transparency, accountability, and alignment with EU objectives.

Committee position. The committees propose amendments to the Commission proposal, adding conditions on efficiency measures, strengthening transparency and accountability, and excluding certain Chinese entities from EFSD+ funding.

Key points

  1. Measures to enhance the External Action Guarantee's efficiency must align with EU foreign policy objectives, including promoting democracy, human rights, and the rule of law, and must not undermine the primary goal of poverty eradication.
  2. Partnerships should consolidate democratic institutions, strengthen regional stability, diversify supply chains, and uphold the rules-based international order, while mainstreaming climate, biodiversity, gender equality, and human rights.
  3. Calls for stronger visibility of EU-funded actions, including systematic display of the EU flag and logo, and for coherence between the EU and member states to present a unified effort.
  4. Supports greater private sector involvement and reducing external dependencies, particularly on China and Russian energy, while prioritising growth plans for enlargement countries.
  5. Emphasises a focused approach to the wider neighbourhood, including the Middle East, North Africa, the Gulf, Central Asia, and the Southern Caucasus, with additional resources for stability and recovery where needed.
  6. Stresses that the minimum financial envelope for Sub-Saharan Africa under Regulation (EU) 2021/947 is not being attained and should be met.
  7. External Action Guarantee support should promote reforms in rule of law, democratic governance, and anti-corruption in partner and enlargement countries.
  8. The Guarantee should strengthen human development, including education, health, social inclusion, and poverty reduction, and promote local ownership and complementarity with national strategies.
  9. Chinese companies associated with the Belt and Road Initiative or state-owned or influenced by the Chinese Communist Party should not secure EFSD+ funds.
  10. The Commission should prepare an evaluation of the External Action Guarantee by early 2027, focusing on delivery and impact, and assess whether guarantee capacity and provisioning are adequate.
  11. Requires enhanced transparency and accountability, including detailed annual reports to Parliament on EFSD+ use, additionality, and development impact.
  12. Supports simplification of blending operations and reporting, but insists it must not weaken transparency or accountability to Parliament and the Council.

Who is affected

  • The European Commission and implementing partners like the EIB, EBRD, and development finance institutions, which face simplified procedures but stricter reporting and accountability.
  • Chinese companies linked to the Belt and Road Initiative or state-owned or influenced by the Chinese Communist Party, which are to be excluded from EFSD+ funding.
  • Partner countries, especially in Sub-Saharan Africa, enlargement countries, and the wider neighbourhood, which should see more aligned and visible EU support.

Figures and deadlines

  • Reduction of the EIB's guarantee cover for sovereign operations from 65% to 60%.
  • Evaluation of the External Action Guarantee to be prepared by early 2027.

Legal basis: Articles 209 and 212 of the Treaty on the Functioning of the European Union