How has the Global Gateway reshaped EU development aid?
In an era marked by geopolitical competition, migration pressures and climate change, development aid no longer appears to be a policy priority in many donor countries. In 2025, global aid declined for the second consecutive year, falling by 23.1% compared to 2024 – with Germany, the United States, the United Kingdom, Japan and France accounting for 95.7% of the total decline. While aid from European Union institutions also fell in 2024, the European Commission has proposed to increase its international spending under the proposed Global Europe instrument, of which 90% should fulfil the criteria for Official Development Assistance.
Understanding how EU institutions allocate aid is therefore essential as their decisions will play an increasingly important role in shaping the effectiveness and future direction of global development efforts. The launch in 2021 of the EU’s Global Gateway strategy, a flagship initiative mainly targeted at infrastructure investment, reflects a growing tendency to use development aid to advance geopolitical and economic objectives. Although the strategy may improve coordination and support infrastructure development in partner countries, it also risks diverting resources towards strategically attractive recipients at the expense of more vulnerable countries.
Our new paper highlights how the drivers of EU aid have changed over time. Poverty reduction has continued to be a consistent determinant of EU aid allocation. However, the importance of democratic governance when allocating aid has weakened, particularly since the launch of the Global Gateway. At the same time, strategic considerations including migration, competition with China and access to critical raw materials have gained prominence.
Overall, our findings suggest that EU aid allocation is not solely driven by poverty-reduction and good governance objectives but increasingly reflects a broader strategic emphasis on geopolitical alignment with the EU and economic interests.
The Why Axis is a weekly newsletter distributed by Bruegel, bringing you the latest research on European economic policy.
Authors
Camille Reverdy
Bruegel Affiliate Fellow
Related content
Between values and interests: drivers of EU aid
EU aid is still more poverty-focused than peers, but external policy drivers are growing and reshaping development cooperation after Global Gateway
Competing for inputs: how the European Union can improve critical raw materials supply security
EU critical raw materials projects fall short of self-sufficiency targets, making trade deals and targeted investment central to supply security
Profit shifting, tax harmonisation and investment in the EU single market: a trilemma
Anti-avoidance success has made EU investment more tax-sensitive, strengthening the case for corporate tax coordination within the single market
Extending CBAM to downstream products risks undermining its credibility as a climate policy tool
The current proposals to extend CBAM's coverage are more about trade protection than stopping carbon leakage