Why the UN aid summit is the EU's best shot at financial justice

Counterintuitive as it may seem, a crumbling world order offers the EU a golden opportunity to champion justice, multilateralism, and the fight against inequality.

Last month’s public commitment in this direction by EU leaders in their exchange with UN secretary-general António Guterres is a wise move. But so far, there's been a big gap between what they say and what they're actually willing to do to make this a reality.

An important first test will be in June, in Seville (Spain), when the Fourth United Nations Financing for Development (FfD4) international conference takes place - the first time it is being held on European soil.

There, EU leaders must choose between the growing trend of isolationism or tackling once and for all the deep crises driving today’s instability. 

This summit is a pivotal moment to promote fair global finance rules that fight inequality, extreme wealth concentration, and the climate crisis that is burning our futures.

This week, EU representatives in New York will join a new round of negotiations on the road to Seville.

So far, the EU’s positions in the FfD process have been deeply disappointing.

Instead of backing proposals for more democratic decision-making on global economic issues, the bloc has systematically opposed any meaningful reform, defending an unfair and dysfunctional status quo, and limiting their offer to the Global Gateway - an investment initiative that barely scratches the surface of the challenges we face.

The system we live in marginalises the world's poorest, shackles countries with crushing debt, and lets the super-rich plunder our planet and take control of our economies. These are the three key issues that the EU should fight for in the FfD process if they truly want to walk the talk:

First is debt. We are in the worst-ever global debt crisis.

According to the UN, 3.3 billion people live in countries that spend more on debt interest than on health or education. The UN is the only global institution where all countries are equally represented and, therefore, the only one that can guarantee that the interests of creditors are not put before the needs of millions of people.

The EU must throw its weight behind reforms that would make the UN responsible for resolving this suffocating debt crisis. Attempts to deal with it by organisations like the International Monetary Fund and the G20, where rich countries hold power over the poorest, have been both insufficient and slow, protecting creditors’ interests and condemning millions to poverty.

Aid is the second pillar - and it is under attack.

In the name of national security, governments are slashing aid budgets and diverting these already scarce funds to defence spending. This is both a moral failure and a strategic blunder. True security isn’t just about military power; it hinges on stability, diplomacy, democracy, and development.

Since first agreed, over 50 years ago, only a handful of wealthy countries have met the commitment to allocate 0.7 percent of their gross national income to aid.

Yet, they face no accountability for this broken promise - because they set the rules themselves within the rich countries’ club, the Organisation for Economic Co-operation and Development (OECD).

That’s why the EU must back a new UN convention to make sure all countries are included on an equal footing. You can’t deal with the cards and stack the deck. 

Tax is the third pillar.

Global tax abuse by the richest corporations and individuals is a shared crisis for the EU and the Global South. The European Commission admits the EU alone loses €100bn annually to corporate tax havens.

Meanwhile, the ultra-wealthy dodge fair contributions, amassing fortunes so fast that the world will see its first trillionaires within a decade. 

The UN is already working on a global Tax Convention and the EU should be actively supporting it. Instead, they are lagging behind and have yet to endorse the Terms of Reference. 

Backing these reforms in global economic governance is not only the right thing to do, but it will also strengthen the EU’s geopolitical standing. It's an unprecedented strategic opportunity.

By aligning with hundreds of governments and promoting UN-led reforms, the EU can help drive a multilateral transformation that puts equality, gender justice, and climate action ahead of crippling debt repayments, corporate interests, and billionaire-boosting policies. 

In these troubled times, EU countries must move from words to action.

In Seville, they have the chance - and the responsibility - to lead with courage, uphold justice, and show that they truly care. This is their moment to lead by example and prove that a better, more just, and equal future is still within reach.