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EU to Slash €2 Billion in Development Spending, Low-Income Nations most affected

by Our Reporter
2 October 2024
in Economy
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M. Bourita et son homologue allemande saluent les termes de l’échange de lettres entre le Président Steinmeier et SM le Roi (Communiqué conjoint)
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The European Commission is poised to reduce its development assistance by €2 billion, a move that will severely impact some of the world’s lowest-income countries, according to exclusive reports.

From 2025 to 2027, the Commission plans to cut funding to these nations by 35%, with countries like Haiti and the Central African Republic among those hit hardest.

Leaked internal documents show that Haiti is set to receive just €5 million per year through 2027, a steep decline from its previous allocation of €33 million annually from 2021 to 2024. Similarly, the Central African Republic will see its funding slashed to €12 million per year, down from €43 million in the last budget cycle.

The reductions aren’t limited to individual countries. Assistance to regions such as Africa and the Indian Ocean will drop by 26%, while Asia and the Pacific are set to see a 31% reduction. The Americas and the Caribbean will suffer the most, with a staggering 58% decrease in aid.

These planned cuts follow a broader trend of shrinking foreign aid budgets across Europe. Donor countries such as the Netherlands, Sweden, France, and Germany have all significantly reduced their contributions in recent months. France alone recently announced a €1 billion cut to its foreign aid, its third reduction in two years.

For countries like Rwanda, which received €55 million from the EU in 2022, this news could spell uncertainty. Though the exact figures for Rwanda in the upcoming budget have not yet been revealed, the general trend suggests that substantial cuts could be imminent. The EU’s support has been critical for Rwanda’s development, particularly in areas like education, infrastructure, and poverty reduction.

While a European Commission spokesperson declined to comment on the leak, citing the ongoing nature of the budgetary planning process, the numbers speak for themselves. With mounting pressure on European countries to prioritize domestic needs, the future of global development aid remains in a precarious position.

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