2020
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Reporting item No. 2 - EU trust funds: high burden, little transparency and not really more rapid than other EU emergency response

Jan 08, 2021

The European Union has not managed to make the EU trust funds an instrument to raise more funds or implement programmes much more rapid than with other EU emergency response schemes.

Since the year 2014, the EU has relied on foreign aid trust funds for emergency prevention and humanitarian assistance. These funds serve to pool EU budget funds and voluntary contributions of donor states. Non-EU member states may also contribute to the funds. Since the funds have been set up, Germany has contributed a total of €1.4 billion.

The funds did not achieve the purpose set since the Union has not managed to make the EU trust funds an instrument to raise more funds or accelerate programme implementation. Fund management is less transparent, since such off-budget funds are governed by requirements and procedures deviating from Union budgetary law.

Especially for Germany, the few benefits of the Union trust funds are eaten up by a considerable number of setbacks. For example, voting weights do not consider EU budget contributions. As a result, Germany has a minor say only on the use of the funds than is the case with other Union funding instruments. Also fund management places a considerable extra burden on the federal government.

We expect the government to act at Union level and urge for funding all emergency assistance as appropriate according to a uniform formula from the regular EU budget. In this way, special solutions such as off-budget funds will no longer be needed.

 

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