Shaping Sustainable Futures

Kárász István (2025) Shaping Sustainable Futures. Business & Diplomacy Review, 3 (1). pp. 169-184. ISSN 3004-0116

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Abstract

This article examines the European Union’s (EU) role as a global actor in promoting sustainability through economic diplomacy and external policy instruments, particularly in a context of growing geopolitical instability and declining traditional development financing. It explores how the EU’s institutional complexity – characterised by legal mandates and shared competences – both constrains rapid responses and reinforces its reputation as a reliable, rules-based partner. Focusing on the Neighbourhood, Development and International Cooperation Instrument (NDICI–Global Europe), the Team Europe approach, and the Global Gateway strategy, the article highlights the EU’s efforts to mobilise investment and strengthen partnerships. A comparative analysis of the EU’s agreements with Egypt and Angola illustrates how different diplomatic approaches affect partner engagement and development outcomes. The Egypt–EU cooperation, centred on the NWFE initiative, demonstrates a flexible and partner-led model that aligns with local priorities, backed by substantial EU and private sector commitments. In contrast, the Sustainable Investment Facilitation Agreement (SIFA) with Angola reveals a more prescriptive EU-led structure, raising concerns about power imbalances and limited local ownership, especially in the context of critical raw material interests. The article argues that in an era of “polycrises,” the EU must refine its external action to enhance flexibility and responsiveness, while maintaining its multilateral and sustainability commitments. It suggests that inclusive, context-sensitive partnerships – anchored in mutual benefits and co-ownership – are more likely to yield long-term, transformative impacts in partner countries.