HomeEverything
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
← All Stories

De Croo: EU budget must balance defence and aid spending

Created at 3 Jul · 8:40 AM1 source↑ Market-relevant
IN SHORT

Alexander De Croo, UNDP Administrator and former Belgian Prime Minister, stated that the EU's long-term budget should balance defence and aid funding, calling them 'two sides of the same coin' crucial for European security and stability.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

€2 trillionEU long-term budget proposal for 2028-2034
€131 billionearmarked for defence in EU budget proposal
€200 billionfor Global Europe Instrument, including aid outreach
6.6 millioncivilians provided with electricity by UNDP in Ukraine
80%of people in Gaza have lost homes

Who's Involved

Alexander De Croo
United Nations Development Programme Administrator and former Belgian Prime Minister
European Commission
proposed EU long-term budget
European Parliament
to ratify EU budget proposal
UNDP
provides support in Ukraine and seeks access in Gaza
Israeli Defence Forces
concerned about humanitarian aid diversion in Gaza
De Croo: EU budget must balance defence and aid spending

↳ Why This Matters

The statement from a high-ranking UN official and former European leader highlights a critical debate within the EU regarding the allocation of its substantial long-term budget, directly impacting future security, development aid, and geopolitical stability in Europe's neighbourhood.

Key facts

  • Alexander De Croo believes EU defence and aid spending are interconnected and vital for security.
  • He stated that military spending's effectiveness is enhanced by conflict prevention investments.
  • De Croo emphasized development's role in security and economic agendas, using Ukraine's reconstruction as an example.
  • He described the humanitarian situation in Gaza as dramatic and called for greater access for aid organizations.

Alexander De Croo, Administrator of the United Nations Development Programme (UNDP) and former Prime Minister of Belgium, has advocated for a balanced approach to the European Union's long-term budget, emphasizing that defence and aid spending are intrinsically linked and crucial for regional security. He stated that increased military expenditure should be complemented by investments in conflict prevention to maximize effectiveness.

Speaking on Euronews' 'Europe Today', De Croo explained that a stable neighbourhood fosters economic growth, democracy, and peace. He noted that the European Commission has proposed a €2 trillion budget for 2028-2034, with a significant portion allocated to defence. While there isn't a specific aid funding stream, instruments like the Global Europe Instrument include funds for outreach. De Croo believes development is a key component of both security and economic strategies, citing the eventual reconstruction of Ukraine as a prime example that can prevent protracted conflict and create economic opportunities.

De Croo recently attended the Ukraine Recovery Conference in Poland, where the UNDP is actively involved in supporting veterans, de-mining efforts, and providing essential services like electricity to millions of civilians affected by Russia's ongoing invasion. He described the war's impact as 'development in reverse,' underscoring the need for a swift end to hostilities to enable human progress.

His recent visit to Gaza also highlighted dire humanitarian conditions. De Croo described the situation as dramatic, with a vast majority of residents displaced and living in inadequate shelters. He is seeking greater humanitarian access for organizations like the UNDP from the Israeli Defence Forces, acknowledging their concerns about potential misuse of aid by Hamas but stressing the importance of enabling people to restart their lives.

Frequently asked questions

The European Commission has proposed €2 trillion for the multi-annual financial framework covering 2028-2034.

Defence has been prioritized by the EU executive, with €131 billion earmarked to meet security needs.

The UNDP supports veterans, de-mining operations, and civilians by providing essential services like electricity.

De Croo described the circumstances as dramatic, with over 80% of people losing their homes and living in inadequate conditions.

What Happens Next

01EU heads of state continue to debate the multi-annual financial framework.
02The EU budget proposal is expected to be ratified by the European Parliament by December.
03Discussions are ongoing between the UNDP and Israeli authorities regarding humanitarian access in Gaza.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Alexander De Croo stated the EU's long-term budget should balance defence and aid spending.
He argued that military spending is more effective when paired with investments to prevent conflict.
De Croo highlighted that development is integral to both security and economic agendas.
He cited the reconstruction of Ukraine as an example of development's economic benefits.
De Croo attended the Ukraine Recovery Conference in Poland.
He noted the UNDP's support for veterans, de-mining, and civilians in Ukraine.
De Croo visited Gaza and described the circumstances as dramatic.
He called for increased humanitarian access for organizations like the UNDP in Gaza.

Sources

T1
De Croo: Defence and aid spending are 'two sides of the same coin'Euronews

Related Stories

'Are we serious about war?': EU defence chief calls for increased budget
2 Jul · 10:40 AM
EU Institutions Urge Ambitious Budget with New Revenue Streams
2 Jul · 4:10 PM
Brussels pivots from climate mitigation to adaptation as heatwaves expose vulnerabilities
3 Jul · 5:10 AM
EU official: Air conditioning essential but not sole solution for heatwaves
2 Jul · 2:10 PM
EPPO raids France, Spain, Italy, Belgium over alleged misuse of €4.3M EU funds by defunct far-right group
3 Jul · 7:10 AM