Position Statement Translated from German with AI assistance

EU External Funding: Greater involvement of the private sector in "Global Europe"

In shaping the new EU external financing instrument "Global Europe", the German Chamber of Commerce and Industry (DIHK) believes it is essential to involve the private sector from the very beginning. Additionally, the Global Gateway initiative should be established as an independent funding component in the Multiannual Financial Framework 2028–2034.

In July 2025, the European Commission launched a consultation on the new Multiannual Financial Framework (MFF) 2028–2034, which also reorganises the EU’s external trade policy and development financing. The central instrument for this is the proposed "Global Europe" regulation (COM(2025) 551 final), which aims to replace the existing Neighbourhood, Development and International Cooperation Instrument (NDICI).

For German businesses, the design of this instrument is of significant practical importance: it determines whether and how companies – particularly small and medium-sized enterprises – can access EU funding for international projects. The DIHK has prepared a position paper on the draft regulation, calling for specific improvements in key articles and recitals.

Background

The Multiannual Financial Framework (MFF) 2028–2034 sets the foundation for the European Union’s external financing policy for more than seven years. The new "Global Europe" instrument aims to consolidate various existing funding programmes and provide financial security for the Global Gateway initiative – Europe’s response to competing international infrastructure programmes.

So far, the Global Gateway is mentioned only marginally in the draft regulation from July 2025, without providing any independent financial mechanism or sub-budget. Meanwhile, feedback from the German business community indicates that EU programmes under the Global Gateway are still perceived as hardly accessible – partly due to unclear application procedures and funding requirements. The European Commission had already conducted a more general consultation on the new MFF in spring 2025, in which the DIHK also participated.

Key demands from the DIHK

Global Gateway must be anchored in the regulation:
A dedicated budget sub-envelope, modelled on the previous European Fund for Sustainable Development Plus (EFSD+), is necessary to provide the initiative with lasting financial security.

Private sector inclusion in consultation processes:
Businesses must be integrated early and dependably into the planning and implementation process, including explicit mentions in relevant recitals and articles of the regulation.

Incorporating private sector into "Team Europe":
The "Team Europe" initiative currently does not include the private sector as an official partner – this must change with the new MFF.

One-stop-shop for company applications:
Companies require a clear and unified point of entry for applying for EU external financing funds (one-stop-shop).

More flexibility in development aid quotas:
Lowering the ODA threshold from 93 to 90 per cent (Article 6, paragraph 5) would facilitate private sector involvement in the Global Europe instrument.

FAQ

Answers to Frequently Asked Questions

What is the 'Global Europe' Instrument?

'Global Europe' is the working title for the new EU External Financing Instrument starting in 2028. It aims to consolidate various existing programmes supporting development cooperation, neighbourhood policy, and international collaboration. It is part of the Multiannual EU Financial Framework 2028–2034.

What is Global Gateway?

Global Gateway is the European Union's investment strategy for infrastructure, digitalisation, and energy supply in partner countries worldwide. It is intended to help European businesses diversify supply chains, access new markets, and develop international partnerships. For businesses already active in or intending to enter non-EU countries, Global Gateway can facilitate access to EU funding and guarantees.

Why do businesses face challenges accessing Global Gateway funding?

According to feedback from German businesses, funding programmes under Global Gateway have so far been perceived as hardly accessible to the private sector. There is a lack of clear application procedures, low-threshold entry points, and a central contact point.

What is 'Team Europe,' and what role does the private sector play in it?

'Team Europe' is a coalition made up of the European Commission, EU Member States, and European financial institutions, which coordinates and consolidates EU external actions. The private sector is not yet an official member—the German Chamber of Commerce and Industry (DIHK) advocates for changes to Article 11 to include the private sector officially.

What does the ODA threshold mean, and why does the DIHK advocate for its reduction?

The ODA threshold (Official Development Assistance) determines the proportion of funds from the Global Europe Instrument that can be credited as public development aid. The higher this percentage, the narrower the scope for private-sector-oriented projects. Reducing the threshold from 93% to 90% would offer more leeway for entrepreneurial initiatives.

 

Key areas:
  • Infrastructure
  • Foreign Trade
This English version is provided for convenience only.
It has been translated with the assistance of AI.
No guarantee is made as to the accuracy or completeness of the translation.

Ansprechpartner

Zwick, Sandra_quad

Sandra Zwick

Director European Policy and EU Foreign Trade Promotion