France opposes foreign aid cuts in EU budget

France has cautioned against significant reductions to the EU's development funding within the upcoming seven-year budget, during a discussion at the POLITICO Brussels Playbook Live event on Tuesday. French European Affairs Minister Benjamin Haddad emphasized the "adverse effects" of cutting USAID under President Donald Trump, urging for a focus on making instruments more effective rather than a budget-driven approach.

EU nations, including France, are advocating to the Irish presidency of the Council of the EU, leading the budget negotiations, to incorporate their perspectives into the negobox negotiating document, which will be disclosed in early October. Several governments have indicated that savings from the Global Europe Fund – a €200 billion fund overseeing the bloc's assistance to foreign nations – are more desirable than cuts to domestic sectors like agriculture, defense, and regional allocations.

The European Commission has audited the implications of reducing its development aid budget by up to 40% in the forthcoming long-term budget; however, the Irish presidency is anticipated to suggest less drastic cuts. Haddad highlighted the primary challenge lies in better coordinating EU policies on trade, migration, and development across various institutions.

"Presently, these matters are disjointed throughout the institutions. Occasionally, we are unable to fully utilize all available instruments for our external policy," he explained. His Polish counterpart, Ignacy Niemczycki, noted that foreign aid increases in the last budget were less substantial than in other areas such as defense and competitiveness.

"Even if we observe slight adjustments, it doesn't necessarily imply that whole programs must be eliminated, but it ultimately depends on the outcome of the negotiations," Niemczycki added.