BRUSSELS — If you want to start a debate in European Union development circles these days, just say “reflows.” That’s the byword for the latest flashpoint between the European Investment Bank and the European Commission over how the former funds its lending to the private sector outside the EU.
On Nov. 10, the European Parliament and Germany — which currently holds the rotating role representing EU states — presented a €16 billion ($19 billion) top up to the bloc’s €1.8 trillion budget for the next seven years, including what was pitched as a further €1 billion for development.
Anti-poverty campaigners at the ONE Campaign welcomed the “much-needed funds”, which would take the 2021-2027 development instrument to €71.8 billion. And the European Parliament claimed the money would “increase flexibility to address future needs and crises.”