Catalytic Power Europe: Blended Finance in European External Action

Abstract The global influence of the European Union (EU) has been debated in overlapping strands literature as ‘normative’, ‘regulatory’ and ‘market power’. They identify diffusion its rules standards a vehicle power. We argue that power extends beyond regulatory capacities includes new ‘catalytic’ realm financing network building. analyse blended finance an instrument ‘catalytic power’, defined mobilisation partners their resources to pursue external objectives. analysis reveals financial leverage, original motivation behind tool's creation, declined importance. Instead, is designed facilitate structure cooperation with other multilateral institutions, positioning Commission central node international increasing this sphere. article closes discussion tool catalytic related trade‐offs.