Tight budget and high inflation undermine EU foreign policy effectiveness

Brussels – Beware of austerity because it affects the functioning of EU foreign policy. The warning comes from Kaja Kallas, High Representative for Foreign and Security Policy of the European Union. She addresses the issue of restructuring the network of EU delegations worldwide. She clarifies that none of the 145 open locations will be closed because of their strategic role. However, she admits the shortage of resources risks putting everything back on the table. 

Kallas said in response to a specific question that the current Multi-Annual Financial Framework (MFF 2021-2027) was built on stable staffing and no more than a 2% annual increase for non-salary expenditure. “This is very challenging in the recent economic climate, and the EEAS has argued that the MFF parameters are not taking into consideration inflation outside the EU (close to 20%), which is a unique position and costs are linked to maintaining a worldwide presence through the network of Delegations.” 

It poses a real problem, so much so that the High Representative warns that “it is necessary to ensure that the Delegations network is able to effectively deliver, including with proper expertise in the field.” However, this seems to be challenging in the immediate term because, she continues, “continued austerity measures and search for efficiencies and redeployments will continue in 2025, which may also require adaptations of the EU’s diplomatic network.” The recommendation for member states, who will be asked to think about the next multi-year budget, is not to skimp on foreign policy if they want to be impactful and decisive internationally: “The EEAS effectiveness and efficiency could be further improved,” Kallas concludes.