Financial Crisis Threatens EU Diplomatic Missions Worldwide

The European Union's diplomatic missions worldwide are facing significant financial challenges, with potential closures on the horizon, as reported by the Financial Times.

EU diplomats have been instructed to cancel travel plans, postpone maintenance, and cut back on events due to severe budget overruns this year.

According to officials familiar with the matter, the European External Action Service (EEAS), effectively the EU’s foreign ministry, has been ordered to slash its budget by about 5%, amounting to €43 million, after exceeding agreed spending limits.

Officials predict the financial strain will worsen in the coming year, making it impossible to maintain the current diplomatic presence in regions with high fixed costs and inflation pressures, such as Africa and Latin America.

The EEAS acknowledged that the proposed budget will necessitate severe austerity measures, potentially requiring the sale of assets to balance finances. Another official indicated that some missions might need to close.

The diplomatic network has already felt the impact of tightened expenses, with cuts to everything from luxury cars to office supplies. One official lamented that organizing events and outreach activities is no longer feasible.

The Financial Times noted the cancellation of the EEAS's annual event at the United Nations General Assembly, which diplomats considered crucial for persuading developing countries to support the EU on issues like the Ukraine war.

A second official described the EEAS as being in dire straits, emphasizing that the world needs more diplomacy, not less.

An EEAS spokesperson confirmed that the agency has reduced all expenses that could be cut and halved the budgets for external offices, despite the severe impact on its global presence.

Conversely, the European Commission, the EU’s executive arm, still has funds available. One official noted that while Commission staff can travel, the EU ambassador cannot because his budget comes from the EEAS.

Around 50 of the EEAS's 145 diplomatic missions face critical security issues, with no funds available for upgrading security systems or installing cameras.

The Financial Times also highlighted difficulties in conducting maintenance, leaving some residences uninhabitable, forcing ambassadors to rent elsewhere while their official homes remain unused.

This week, Josep Borrell, the EU’s High Representative for Foreign Affairs, decided to hold the bi-annual informal meeting of foreign ministers in Brussels instead of Hungary, as planned, shifting the cost burden to the EEAS.

Translation expenses alone for this meeting exceed €70,000. There is a significant gap that needs to be filled, according to officials.

The EU maintains 145 diplomatic missions worldwide, including in Barbados, Cape Verde, and the Vatican.