Developing countries that support Russia or Iran could lose EU aid, and European companies may receive preferential treatment in procurement financing in the future, EU foreign policy chief Kaja Kallas said on Monday, UNN reports, citing Euractiv.
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Speaking ahead of a meeting of EU development ministers in Brussels, Kallas said the bloc must become "more strategic" in how it finances foreign aid in an era of intensifying geopolitical rivalry and conflict.
"If a partner supports Russia or Iran, then it has to be flexible so that we can reorient our engagement in that case,"
Kallas did not specify exactly how any new flexibility would be incorporated into policy.
"It's a very careful balance... not to withdraw everything, but also to keep in mind that Europe has interests," she said.
"If we have projects to support countries, and in fact it goes to our competitors, then we also have to look at how we can address that," Kallas emphasized.
The remarks come as EU leadership designs the future of the bloc's €300 billion geopolitical investment strategy, "Global Gateway," in the next seven-year EU budget. Controversy has arisen over an EU-backed project in Senegal worth over €320 million, which is likely to be awarded to a company linked to the Chinese government that was previously found to be in violation of the bloc's foreign subsidy rules.
EU Commissioner for Development Jozef Síkela stated that European preferences should be included in future EU development aid. "In a world where investment, infrastructure, and supply chains have become tools of power, foreign policy cannot be sentimental," he said on Monday.
MEPs warn against tying EU aid to EU companies, prioritizing European competitiveness over poverty eradication.
Belgian Foreign Minister Maxime Prévot warned that the EU should not stop aid to developing countries at a time when the US is cutting aid.
"Europe must not leave a vacuum... and in that case, others will take that place with an even more transactional approach," he said.
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