This paper outlines how an effective ECF could be built – and what pitfalls to avoid. The Commission is right to call for structural simplification. But simplification is not an end in itself; it only makes sense if it leads to tangible improvements. A one-size-fits-all consolidation risks doing more harm than good. Rolling all directly managed programs into a mega-fund could dilute accountability, sideline sectoral expertise, and undermine the flexibility needed to adapt funding tools to specific challenges.
To avoid these risks, this paper proposes four key design principles for the ECF.
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