Development Co-operation Report 2020

Team Europe is committed to an equitable, sustainable and inclusive recovery process: In my view

Jutta Urpilainen,
European Commissioner for International Partnerships

The social and economic impacts of the pandemic have been devastating. The complex interplay between human health and safety, sustainable growth, and the environment represents the toughest challenge for governments and policy makers for many decades to come. Moreover, as is sadly the norm in crises, it is the poorest and most vulnerable who have been hit the hardest.

The pandemic has underlined the continuing importance and legitimacy of the overarching framework set by the 2030 Agenda and its Sustainable Development Goals (SDGs) as well as the Paris Agreement. At the same time, the pandemic has reversed decades of progress and has highlighted how far off track we are to achieve them. How is the European Union (EU) responding?

The EU acted very quickly to address the immediate impacts of the pandemic. As the scale of the emergency became clear, we put in place a strong and co-ordinated response to COVID-19 in partner countries as “Team Europe”. By mid-July, this joint effort had mobilised more than EUR 36 billion. Working together with our member states and European financial institutions, Team Europe allows us to have a greater impact at country level, reducing the burden on overstretched developing country administrations as well as forging a higher profile for the EU as a force for peace, sustainable development and climate action.

The Team Europe package combines funding from the EU budget, EU member states (including their financing and implementing institutions), the European Investment Bank, and the European Bank for Reconstruction and Development. It focuses on countries most in need, including least developed and fragile countries, and pays particular attention to the most vulnerable population groups. This rapid response has supported partner countries’ efforts to fight the COVID-19 pandemic in three critical areas by responding to the immediate health impacts of the crisis; further strengthening health systems to respond in a resilient way to future crises; and mitigating the socio-economic consequences of the pandemic. As the crisis is far from over, these responses will remain valid for many months to come.

We can only tackle this crisis successfully in a spirit of global solidarity and collaboration.

Our combined support to partners at country, regional and global level demonstrates the EU’s solidarity, responsibility and leadership and our support for multilateralism. We can only tackle this crisis successfully in a spirit of global solidarity and collaboration. Consequently, the EU has also been very actively engaged in the multilateral response to the pandemic.

We are working in close partnership with international organisations such as the United Nations, the OECD and international financial institutions, as well as the G7 and the G20. The Coronavirus Global Response pledging marathon, co-convened by the European Commission, raised EUR 15.9 billion to ensure the collaborative development and universal deployment of diagnostics, treatments and vaccines against COVID-19. In addition, during the 28 May High-Level Event on Financing for Development in the Era of COVID-19 and Beyond, President von der Leyen made a call for a Global Recovery Initiative, linking debt relief to investment and to achieving the SDGs. On debt suspension and restructuring, we also value the work of the Paris Club and the OECD Development Assistance Committee. The president’s aim is a green, digital, just and resilient recovery, bringing countries closer to meeting the SDGs and the Paris Agreement commitments.

In our discussions with multilateral and bilateral partners, we have called for a variety of measures to ensure a sustainable recovery. These include full alignment of public and private investment with the SDGs and the Paris Agreement, robust non-financial corporate reporting, and comprehensive carbon pricing. We have called for countries to update and upgrade their national plans, including their nationally determined contributions, based on upgraded national financing strategies, with enhanced investment in key areas including climate action, education, health, and digital and social protection. Furthermore, we have urged international development institutions, including public development banks, to direct their activities towards supporting these recovery efforts.

For the future, the EU is committed to aligning our support with partner countries’ recovery plans while promoting equitable, sustainable and inclusive recovery processes that put youth in the driving seat. For example, the Commission’s proposal for a new Neighbourhood, Development and International Cooperation Instrument for the period 2021-27 will facilitate recovery from the crisis. It will address, among others, inequalities and human development, gender, and migration. It includes an ambitious spending target to step up efforts on climate change. It will also contain an investment framework to raise additional financial resources for sustainable development from the private sector. The External Action Guarantee will help to support microenterprises and small and medium-sized enterprises; promote decent job creation, strengthen public and private infrastructure, support the digital economy, and continue to address the health and socio-economic consequences of the COVID-19 crisis. Together with the private sector, this may mobilise more than half a trillion euros in investments for the 2021-27 period. Many of these actions will be done jointly with our member states, as Team Europe initiatives.

The pandemic could hardly have been clearer in showing the scale of the challenge to reduce inequalities. The EU is determined, through international solidarity and co-operation, to support a lasting recovery that leaves no one behind.