The Financial Perspectives (2014-2020) is the European Union’s (EU) multi-annual financial framework review. It is one of a number of reviews that will shape the future of EU development assistance and the credibility of the EU as a major player in international development.

The debate on the future priorities, financial allocation, instruments and structure of EU development cooperation takes place as the Lisbon Treaty’s provisions to manage the EU’s external policies are being shaped. This Background Note considers three fundamental questions about future funding of EU external actions: i) how much funding is there, overall, for the EU budget? ii) what should it be spent on? and iii) how should it be managed?