NDICI-Global Europe: Council and Parliament strike a deal to strengthen External Action Guarantee

On 26 January, the Council Presidency and the European Parliament reached a provisional political agreement on targeted amendments to the regulation establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI), aimed at increasing the efficiency and effectiveness of the External Action Guarantee (EAG). 

The EAG is the EU’s key instrument for supporting investments outside the Union by reducing financial risks and mobilising public and private financing.

The agreement will enable the EU to use existing resources more effectively and strategically in support of its external action priorities, including the mobilisation of sustainable investment through the European Fund for Sustainable Development Plus (EFSD+). It preserves the objectives, principles and safeguards of the NDICI-Global Europe framework, while introducing practical improvements that will allow the EU to respond more rapidly and coherently to global challenges. 

The External Action Guarantee (EAG), backed by substantial EU funds (up to €53.4 billion), acts as a financial cushion, leveraging private funds for investments in areas such as climate, infrastructure and reconstruction, with the EIB playing a key role in operations.

“In today’s challenging geopolitical and geoeconomic context, this is a concrete, timely and necessary step that strengthens the ability of the EU to deliver, and reinforces our global engagement and our role as a reliable and strategic partner,” said Constantinos Kombos, Minister of Foreign Affairs of the Republic of Cyprus.

The provisional agreement will now be endorsed by the Council and the Parliament before being formally adopted.

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Press release