The European Union is set to reassess its multi-billion dollar foreign aid program to better align financial distributions with its geopolitical objectives.

This was reported by Bloomberg.

It is noted that the European Commission plans to become more transactional by reforming its foreign aid framework and making it more targeted towards partners.

The bloc aims to restructure its foreign aid to ensure its strategic interests, which include strengthening alliances with like-minded countries, securing access to raw materials, and controlling migration flows.

A draft document, which is still subject to change before its presentation, indicates that the EU's overall budget, traditionally around 1% of the bloc’s GDP, is under pressure due to a wide array of demands, from green transitions to defense.

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

The Commission's plan coincides with Trump's decision to dismantle the U.S. Agency for International Development (USAID), which distributes foreign aid amounting to tens of billions of dollars each year.

The EU and its member states collectively are the largest donors of international aid globally, providing nearly 96 billion euros (99 billion dollars) in 2023, while the U.S. spent about 72 billion dollars on foreign assistance.

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

Additionally:

Mike Waltz, a national security advisor to President Trump, believes that cutting foreign humanitarian aid will not result in the U.S. ceding control on the global stage to China and Russia.

The Trump administration released a list of "waste and abuse" within USAID.