OECD Development Co‑operation Peer Reviews: European Union 2025

Annex A. Progress since the 2018 DAC peer review recommendations

 

DAC Recommendation	Assessment of action taken
1.1 In view of the negotiations for the MFF 2021‑2027, the EU should establish operational guidance on how the EU, its institutions and the Member States as a whole will implement the Consensus by remaining focused on poverty reduction and sustainable development, building on the comprehensive financing instrument proposed by the European Commission.	Implemented A series of tools has been developed and strengthened to implement some of the commitments stated in the Consensus. This includes Staff Working Documents and implementation toolkits that provide guidance for staff on integrating SDGs into EU programming and analysing poverty and inequality during the programming phase. Tools include the Gender Action Plan III and its country-level implementation plans, the Action Plan on Human Rights and Democracy (2020-2027) and its country strategies, Civil Society Roadmaps, conflict analysis screenings and the Greening toolbox. With the Inequality Marker in place for all INTPA grants and extended to EFSD+, the European Union has made progress on putting inequality at the centre of project design. However, while aligned to the Sustainable Development Goals, the focus of the Global Gateway strategy on EU economic and geostrategic interests may put poverty reduction objectives at risk. In the Neighbourhood and Enlargement countries, the Commission implements the Consensus by applying its principles in country-level support, institutional reforms and inclusive growth efforts.
1.2 Further strengthen measures of organisational performance against the gender action plan.	Partly implemented The gender action plan and the related country-level implementation plans have supported implementation of a gender focus at headquarters and in countries. Including all EU institutions, 59% of EU bilateral allocable ODA had gender equality objectives in 2022-2023. In 2023, 72% of all EFSD+ operations (blending contracts and guarantees operations) are gender mainstreamed according to EU statistics. The total share of bilateral ODA with gender equality objectives increased quite drastically around the adoption of this target. However, the share has stagnated at around 60% over the past few years. In addition, only 2% of bilateral allocable ODA has gender equality as a principal objective in 2022-2023. Training for managers and staff has been rolled out and expertise on gender equality is developing throughout the services. However, gender experts and focal points remain in high demand.
1.3 Develop an explicit strategy for furthering environment and climate change objectives.	Implemented The 2016 Guidelines on the Integration of Environment and Climate Change in Development Co‑operation were fully revised in 2024 and now take the form of an online (and live) resource – the Greening EU co‑operation Toolbox. Notably, this better reflects the Global Gateway's investment agenda and related tools (blended finance and guarantees). The Greening Facility, which provides technical assistance, has been extended to 2029. EU staff receive ongoing training, and all projects are screened for environmental and climate impacts. EU institutions have increased the share of their ODA in support of the environment and the Rio Conventions. This share reached 35% (USD 8.1 billion) in 2022-2023, up from 26.7% in 2020-2021 but below the DAC average of 39%. The Global Gateway introduces new risks with the enforcement of environmental due diligence and safeguards to be closely monitored.
1.4 When creating new trust funds, maintain and further uphold the alignment of objectives with partner countries’ development priorities and limit where possible their scope to a specific crisis context.	Implemented No new EU Trust Funds are expected in the next few years.
1.5 Further consolidate the EU programme around priority sectors in its partner countries.	Partially implemented According to the Court of Auditors, MIPs were concentrated on a limited number of sectors, but the definitions of these sectors were broad. The Global Gateway focuses on five broad sectors.
2.1 Building on its work to strengthen policy coherence for development, the EU should better identify impacts of EU and Member State policies on developing countries in its reporting, beyond actions taken.	Partially implemented Key tools include the Better Regulation agenda, impact assessments, the Regulatory Scrutiny Board and Inter-services Consultations. However, some sustainability-related EU policies and regulations have created challenges for trade and investment partners. Increasing the coherence and distinction between development co‑operation and the external dimension of migration is a work in progress.
2.2 Systematically follow up on EU Member States’ efforts to promote policy coherence for development.	Implemented Through the Technical Support Instrument, the Commission is supporting Member States to strengthen their systems and approaches to ensuring policy coherence for sustainable development, with multi-country projects in collaboration with the OECD supporting cross-learning. There are no more standalone PCD reports as they are integrated into comprehensive reporting on SDG implementation.
3. In channeling funds to multilateral organisations, the Commission should articulate a clearer rationale to ensure added value.	Implemented In early 2021, the European Commission adopted the Joint Communication on strengthening the EU contribution to rules-based multilateralism. The Commission conducts regular screening of key multilateral entities to enable a more selective and effective approach based on policy priorities. Efforts have also focused on strengthening strategic partnerships with the UN and Bretton Woods institutions.
4.1 In implementing the External Investment Plan, the EU should ensure that partner country priorities are well targeted when mobilising finance for sustainable development and elaborate the valued added of the EFSD to all EU stakeholders.	Partially implemented Country visits highlighted significant alignment to partner countries’ priorities at national and subnational level. The relevance of the EFSD+ tool is well understood by partners but questions remain on its attractiveness and shifting focus with the launch of the Global Gateway.
4.2 Develop an evidence-based and whole-of-EU approach, driven by EU policies to mobilising private investment, by enhancing collaboration between the Commission and the EIB, as well as the EBRD and other European DFIs, including on how to improve the investment climate.	Partially implemented The Global Gateway strategy is promoting stronger co‑ordination across various stakeholders. Mobilisation of private financing through EFSD+ is still limited. Support to the investment climate is a key component of the Global Gateway, but this does not necessarily include rule of law. In addition, support to public finance management could be enhanced further. In 2024, an independent High-Level Expert Group (HLEG), tasked by the European Commission, presented recommendations for a series of innovative mechanisms and policy actions, to mobilise at scale private finance in low- and middle-income countries for their sustainable infrastructure investments.
5. The EU and its Member States should continuously expand and refine implementation of their joint programming strategy, including by reinforcing partner country ownership and strengthening results-based approaches.	Partially implemented The European Union has been a champion of development effectiveness, supporting co‑ordination beyond Member States and country ownership. The European Union and its Members are moving away from joint programming, which is too administratively heavy, in favour of Team Europe and Global Gateway initiatives. While aligned to partner countries’ priorities, national and local partners are not part of the governance mechanisms of the TEIs.
6.1 The EU should make better use of its results information and evaluations in determining overall achievements, trends, common factors in success and/or failure, value for money and policymaking.	Partially implemented The European Union has finalised a new approach to results-based management. The European Court of Auditors still found weaknesses in results assessments and its influence on reallocations following the mid-term review of NDICI-Global Europe. A transparent results framework for the Global Gateway would strengthen democratic oversight.
6.2 The EU should make better use of its results information and evaluations in communications by articulating a stronger narrative on the contributions of EU institutions as a whole to country-level outcomes.	Partially implemented DG INTPA is the tenth most transparent provider based on the Aid Transparency Index of 2024 by Publish What You Fund and is now in the “very good” category. Its score has increased by 10.5 points since 2022, making it the eighth largest improved. This has resulted from improvements to reviews and evaluations, objectives, pre-project impact appraisals and budget documents. However, it does not communicate on the results of its projects. In addition, current communication is now mainly focused on the Global Gateway, which is not yet understood by its target audience.
7. The Commission should make decentralised evaluations more accessible to the public in order to enhance transparency and accountability.	Implemented The Commission made fully accessible to the public decentralised evaluations (intervention-level evaluations) by systematically publishing final reports beginning in April 2024.
8.1 In implementing the Consensus regarding ODA targets, the EU should take steps to use its co‑ordinating role more effectively in encouraging Member States to attain the ODA targets.	Partially implemented The Commission works closely with Member States to monitor achievements and encourage progress towards ODA targets. However, most Member States have not achieved their targets yet and a quarter have cut their ODA budget for 2025 onwards.
8.2 Lead by example by allocating more resources to LDCs.	Not implemented EU support to LDCs is decreasing in share and volume.
9.1 The Commission could build on progress in simplifying procedures and responding faster by reducing the reporting burden through greater reliance on streamlined and/or shared assessment mechanisms, particularly in partnering with CSOs.	Implemented In 2025, the RELEX DGs authorised single lump sum grants, which will make it possible to limit reporting to activities undertaken and results obtained. This constitutes a major simplification of reporting since it no longer relates to costs and their verification by the contracting authority. DG INTPA expects to launch pilot projects to test this new modality. Implementing partners still share concerns on the length, complexity of procedures and reporting requirements.
9.2 The Commission could build on progress in simplifying procedures and responding faster by increasing the budgetary authority of the delegations.	Partially implemented Most budgetary implementation powers have been sub-delegated to the Heads of EU Delegations in partner countries. Authorisation of financing decisions, budgetary guarantees and a few derogations to the financial and contractual rules remain under the authority of headquarters. DG INTPA is reassessing which administrative responsibilities will be transferred to regional hubs or headquarters.
9.3 The Commission could build on progress in simplifying procedures and responding faster, encouraging and incentivising innovation to improve its administrative systems, working methods and development impact.	Partially implemented The launch of the Global Gateway has led to new ways of working for the Commission and Delegations (e.g. further engagement with private sector, chambers of commerce, DG Trade). However, EU processes remain administratively heavy. The process for accessing EFSD+ – a key financing instrument of the Global Gateway – is long and complex.
10. The EU should regularly review and adjust its human resource policies to ensure that its system has staff with appropriate skills and knowledge in the right places.	Partially implemented The Commission is designing learning courses based on a forward-looking skills gap analysis, including to support implementation of the Global Gateway. It is also revising the structure of its network. The Commission will have to be mindful that a more regional approach does not come at the expense of local knowledge. Continued support to change management and engagement with private sector actors will remain relevant given the scale of the paradigm shift.