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Blended finance and the illusion of development: Lessons from the EFSD+ for the next EU budget


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Blended finance and the illusion of development: Lessons from the EFSD+ for the next EU budget

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Blended finance and the illusion of development: Lessons from the EFSD+ for the next EU budget

Blended finance and the illusion of development: Lessons from the EFSD+ for the next EU budget

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13th February 2026

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This report by ActionAid, CONCORD and Eurodad warns that proposals for the next Global Europe Instrument in the MFF (2028–2034) risk weakening the EU’s development mandate by prioritising investment-led approaches over poverty reduction and inequalities.

Drawing on lessons from the current EFSD+, it calls on the European Parliament and Council to safeguard grant-based funding, strengthen oversight of blended finance and guarantees, and uphold the EU’s development effectiveness commitments.

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Report by ActionAid, CONCORD and Eurodad

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