The European Union will conduct a review of its multi-billion euro external aid to more closely align the bloc’s funding allocation with its foreign policy interests in the midst of a challenging international environment.

The move comes as the European Commission wrestles with a growing list of priorities including defense, amid the backdrop of the Ukraine war — now in its third year — and hostile posturing from US President Donald Trump in his first weeks in office.

Bloomberg reported this with reference to the draft of the relevant document.

The publication notes that this is happening at a time when the number of priorities, including defense due to the war in Ukraine, is increasing, and the new US President Donald Trump is hostile.

The European Commission wants to deliver foreign aid on better terms, modernizing it and making it more useful for partners. It will outline ideas for improving its next seven-year budget from 2028 to 2034 in the coming weeks.

The bloc wants to restructure foreign aid to ensure its strategic interests, including strengthening alliances with like-minded countries, access to raw materials, and curbing the influx of migrants.

The document, seen by Bloomberg, notes that the blocʼs overall budget, which amounts to about 1% of EU GDP, is overstretched due to a wide range of spending — from the green transition to defense.