Concept and Legal Framework of EU Development Policy
The development policy of the European Union (EU) represents a central policy area for the Union’s external relations. Its aim is to eradicate global poverty, promote sustainable development, and strengthen democracy, human rights, and the rule of law in developing countries. European development policy is comprehensively governed by legal regulations and is an integral part of the EU Treaties as well as secondary legislation and international agreements based on them.
Legal Sources of European Development Policy
EU development policy is predominantly governed by primary law in the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU). In particular, Article 3 (5) TEU as well as Articles 208 to 211 TFEU are of central importance. There are also relevant secondary legal acts, such as regulations and directives, as well as international agreements in which the EU participates as a collective or which it concludes with third countries.
Primary Legal Framework
The primary legal framework is established mainly by the following provisions:
- Article 3 (5) TEU declares the objective of the Union to contribute to sustainable development, solidarity, and mutual respect among peoples.
- Article 21 TEU determines the principles and objectives of the Union’s external action, to which sustainable development contributes.
- Articles 208-211 TFEU contain the specific provisions on development policy. Article 208 TFEU clarifies that the main objective is the reduction—and ultimately eradication—of poverty.
Secondary Law
Based on the TFEU, the European Union issues a number of legal acts, such as regulations for the establishment of financing instruments, guidelines, or decisions on financing frameworks. Important provisions concern, for example, the European Development Fund (EDF), which until recently played a central role in financing cooperation with African, Caribbean, and Pacific (ACP) countries, as well as the Neighbourhood, Development and International Cooperation Instrument (NDICI – Global Europe), which has replaced the EDF since 2021.
International Agreements
The EU regularly concludes international agreements with third countries and organizations. The Cotonou Agreement with the ACP countries was particularly significant; it was replaced in 2021 by the Samoa Agreement. Treaties under international law are decisive in shaping the content and implementation of development policy.
Institutional Structure and Responsibilities
EU development policy is designed jointly and in a coordinated manner.
European Commission
Within the European Commission, the Directorate-General for International Partnerships (DG INTPA, formerly DG DEVCO) is primarily responsible for the conception, management, and implementation of development policy. Other relevant directorates-general are DG ECHO (humanitarian aid) and the European External Action Service (EEAS).
Council of the European Union and European Parliament
The legislative process in development policy follows the ordinary legislative procedure, in which both the European Parliament and the Council of the European Union have decision-making powers. Particularly noteworthy is the division of competences according to the principle of shared responsibility, as set out in Article 4 (4) TFEU: Development policy is pursued both at the EU level and at the level of the Member States.
Member States
The individual development policies of the EU Member States remain expressly unaffected (Article 208(1) TFEU). However, the Member States are obliged to align their national policies with the Union’s actions and to coordinate them as best as possible (Art. 210 TFEU).
Principles and Objectives of EU Development Policy
Poverty Reduction and Sustainable Development
According to Article 208 TFEU, the ‘reduction and in the long term the eradication of poverty’ is the overarching objective. In addition, the EU commits itself to integrating sustainable development—including economic, social, and environmental aspects—strategically and legally into all policies.
Principle of Policy Coherence for Development
According to Article 208(2) TFEU, the Union has the obligation to ensure that none of its measures in any internal or external policy area contradicts the objectives of development policy. This requirement for coherence (so-called ‘Policy Coherence for Development’, PCD) was particularly highlighted in the Lisbon Treaty.
Human Rights, Democracy and Rule of Law
Respect for human rights, promotion of democracy, equality and the rule of law are, according to the Treaties and relevant secondary legislation, integral parts of development policy.
Financing Instruments of Development Policy
EU development policy has a variety of financing instruments:
- NDICI – Global Europe (2021-2027): Main financing instrument for foreign and development policy, comprising around 80 billion euros.
- European Development Fund (EDF): 1959-2020 independent financing instrument for implementing the ACP partnership.
- Humanitarian Aid Fund and Thematic Programmes: For specific areas such as human rights, environment, or gender equality, there are additional instruments each with their own legal basis.
Legal Effects and Control Mechanisms
Legal Bindingness
The regulations and decisions of the Union on development policy are binding in the Member States either directly or after implementation by national law, and create legal effects for programme participants in accordance with their content.
Control and Accountability
Control over the lawful use of funds lies with the European Court of Auditors and independent audit bodies. The European Commission is accountable to Parliament and the Council and regularly submits reports on the effects and compliance with legal requirements.
Relationship to Other Policy Areas
External Relations
Development policy is closely linked to other areas of external action, such as the Common Foreign and Security Policy (CFSP), trade policy, or neighbourhood policy. Legally, close coordination of measures and programmes is required.
Delineation of Competence from National Development Policy
According to Article 4 (4) TFEU, there is a shared responsibility, so that both the EU and the Member States can act independently, but cooperation and coordination are mandatory (Article 210 TFEU).
Cooperation with Third Countries and International Organizations
The implementation of EU development policy is carried out in partnership with third countries, international organizations—such as the United Nations or the OECD—and other multilateral institutions. The contractual relationships are legally binding, structured through partnership agreements, cooperation agreements, and so-called country strategies.
Outlook and Reforms
The legal development of EU development policy is characterized by a gradual expansion of its mandate, greater institutionalization, and new financing and management instruments. In particular, the integration of the EDF into the EU budget (formerly a separate fund) as part of the NDICI reform represents a central step in reform.
Literature and Legal Sources
- Treaty on the Functioning of the European Union (TFEU), Articles 208-211
- Treaty on European Union (TEU), Articles 3 and 21
- NDICI Regulation: Regulation (EU) 2021/947 establishing the Neighbourhood, Development and International Cooperation Instrument (“Global Europe”)
- Cotonou Agreement (2000), Samoa Agreement (2021)
- Various implementing provisions and strategy papers of the European Commission
Conclusion: EU development policy is comprehensive and detailed, regulated both in primary and secondary law. It primarily pursues the goal of poverty reduction, embedded in a normative framework that mandates policy coherence, sustainable development, and respect for human rights. Coordination with national development policy remains a constant challenge and is particularly extensively regulated by law. The ongoing consolidation and expansion of the legal foundations demonstrate the continuous evolution of EU development policy in the international context.
Frequently Asked Questions
How is development policy anchored as a policy area in the EU Treaties?
The developmental competence of the European Union is primarily governed by the Treaty on the Functioning of the European Union (TFEU), especially in Articles 208 to 213. Accordingly, EU development policy complements the measures taken by the Member States, with the principle of coherence with other policy fields—according to Article 208(2) TFEU—playing a special role. The Treaty on European Union (TEU) also anchors development policy as one of the founding purposes of the EU (Article 21 TEU: promoting sustainable development in third countries). On the basis of these treaty provisions, the EU is authorized to independently conclude development agreements with third countries, launch programmes, and provide funding. The legal basis is subject to the ordinary legislative procedure unless another approach is expressly provided for (especially in the area of external measures).
What legal instruments can the EU use in the field of development policy?
Various legal instruments are available to the European Union. Secondary law measures are usually in the form of regulations, such as the Multiannual Financial Instrument for Developing Countries (such as the Neighbourhood, Development and International Cooperation Instrument – NDICI/Global Europe pursuant to Regulation (EU) 2021/947). In addition, the Council of the EU, often together with the European Parliament, can adopt targeted implementing decisions, joint positions, or framework regulations. Furthermore, the EU concludes international law agreements with partner countries and regions, for example, the Cotonou Agreement with the countries of Africa, the Caribbean, and the Pacific (ACP). The general rules for concluding international agreements apply in this context (Art. 216 ff. TFEU).
How important is the protection of human rights in EU development legislation?
The protection and promotion of human rights are a mandatory component for all of the EU’s external actions, and hence also for development policy (cf. Art. 21(1) and (2)(b) TEU, Charter of Fundamental Rights of the EU). Legally, it is required that all development policy measures, programmes, and funding are subject to conditions regarding the respect for human rights, rule of law, and democratic principles in partner countries. These so-called conditionalities are expressly laid out by specific clauses in financing instruments and in agreements concluded by the EU, and in the event of breaches, financial or political consequences can include the suspension of measures.
How is the relationship between EU competences and national development policy legally structured?
The EU’s development competence is set up as a ‘shared’ competence under Article 4(4) in conjunction with Article 208(1) TFEU, whereby Member States may continue to pursue and shape their own development policy. This means that EU and Member State measures complement each other, but they must be coordinated and coherent. According to Article 210(1) TFEU, the Union is obliged to cooperate with Member States for efficient development cooperation and to ensure reciprocal information. National measures may not be in conflict with the objectives and principles of EU development policy.
What are the legal requirements for the allocation of funds in the context of EU development policy?
Budget management and fund allocation follow—not only the general requirements of the EU Financial Regulation—but also additional development policy and legal requirements. According to Article 209(1) and (2) TFEU, the implementation of programmes and measures is subject to specific transparency and control mechanisms. As a rule, a prerequisite for the allocation of funds is compliance with the principles of efficient use of resources, non-discrimination, equal treatment, and accountability. In co-financed projects, a contractual arrangement between the Commission, partner countries and, if applicable, international organizations is concluded, in which the use of funds, reporting, and control rights of the EU are specified in detail.
How is the legality and effectiveness of EU development policy reviewed?
The legality of EU development policy measures is subject to several control bodies: At the Union level, the European Commission is responsible for the implementation and monitoring of programmes; the European Anti-Fraud Office (OLAF) and the European Court of Auditors audit financial flows and their correct use according to Art. 287 TFEU. Institutionally, the European Court of Justice may also be called upon if there are doubts as to the legality or interpretation of development policy legal acts (judicial review and preliminary ruling procedure under Arts. 263 ff. TFEU). The effectiveness of the measures is also ensured through regular evaluation reports and external audits, which may lead to binding adjustments both politically and legally.
Are there legally binding planning elements to ensure coherence between EU development policy and other policy fields?
Article 208(2) TFEU expressly obliges the EU and its Member States to both political and legal coherence in line with development objectives with other policy fields, particularly trade, agriculture, fisheries, and environmental policy. In practice, this means that all EU secondary law and measures are to be checked for potential conflicts with the development agenda. This requires mandatory ex-ante impact assessments as well as regular reviews to determine whether existing regulations or agreements impact development objectives. The results flow into updates of development strategies and the adaptation of other EU legal acts.
