The European Union is set to review its external aid strategies to allocate funds more effectively in line with its political objectives.

This was reported by Bloomberg.

It is noted that the European Commission, the executive arm of the EU, aims to reform external aid, making it more targeted for its partners.

The bloc intends to restructure external assistance to back its strategic priorities, including strengthening alliances with like-minded countries, ensuring access to resources, and managing migration flows.

A draft document, which may still be altered before its official release, indicates that the overall EU budget, traditionally around 1% of the bloc's GDP, is under pressure due to a wide range of demands—from green transitions to defense issues.

In the coming weeks, the Commission will present ideas for enhancing its next seven-year budget covering the period from 2028 to 2034.

The Commission's plan coincides with the Trump administration's decision to dissolve the U.S. Agency for International Development (USAID), which allocates foreign aid worth tens of billions of dollars annually.

The EU and its member states together constitute the largest international aid donor, providing nearly €96 billion ($99 billion) in 2023, while the U.S. spent around $72 billion on external support.

Also read: Which agencies and organizations will not receive funding due to the suspension of USAID? List

Reminder:

U.S. National Security Advisor Mike Waltz does not believe that cutting foreign humanitarian aid will lead to a loss of U.S. influence to China and Russia on the world stage.

The Trump administration released a list of "mismanagement and abuses" at USAID.