The European Parliament adopted by 468 votes to 87 with 66 abstentions a resolution on the European Investment Bank (EIB) – Annual Report 2014.
Members recalled that the core task of the EIB, is to support financially projects in the interest of the Union that contribute to the balanced development of the internal market and to social, economic and territorial cohesion, and thus strengthen European integration, by fostering an increase in jobs and competitiveness.
The EIB’s investment programme should underpin the EU policy objectives in the following way:
Prioritising investments to accelerate recovery and enhance productivity: Parliament encouraged the EIB to continue in its efforts to increase the low level of investment in the EU.
Members welcomed the fact that in 2014, the EIB funded 285,000 small and medium-sized enterprises, thus safeguarding 3.6 million jobs, and signed contracts for a total of 413 projects within the EU worth EUR 69 billion and 92 new projects outside the EU for a total of EUR 7.98 billion. They observed, however, that in 2014 59.4 % of all EIB-signed projects were allocated to the top five EU economies, while the share of the other 23 Member States stood at only 30.3 %. They encouraged the EIB to implement a more balanced lending policy towards Member States, given the intensity of both the current and the long-term challenges facing the Union.
The EIB was called on to:
The resolution emphasised that project funding approval should be based on adequate financial and risk analysis, financial viability and sound budgetary management. Projects approved for EIB funding should offer clear added value to the European economy. Investment, structural reforms and sound budgetary policies must be part of an overall strategy.
Promoting youth employment, innovation and SMEs: Parliament encouraged the EIB to continue investing in education, skills development and jobs for young people and called on the EIB to report comprehensively on the results achieved by its Investing for Youth initiative.
Noting that SMEs in many parts of Europe face extreme difficulties accessing necessary finance, Members welcomed, in this context, the greater emphasis the EIB is placing on supporting SMEs. They emphasised the importance of the EIB in facilitating partnerships and strengthening support instruments for funding micro, small and medium-sized enterprises’ activity and for innovative start-ups. They called furthermore on the EIB to cooperate more closely with regional public institutions with a view to optimising the financing possibilities for SMEs, and develop an effective communication policy addressing potential private beneficiaries, as an integral part of its advisory function.
Enhancing environmental sustainability and climate action: Parliament noted that out of the 84 environment projects signed in 2014 inside the EU, amounting to a total of EUR 12.6 billion, sustainable transport projects accounted for EUR 5.1 billion, renewable energy and energy efficiency projects for EUR 3.7 billion, and protection of the environment projects for EUR 3.8 billion. Signed operations for the ‘climate action’ cross-cutting objective amounted to 24 % of total EIB financing inside the EU.
In this context, Members:
Promoting economic and social cohesion and convergence: Parliament recalled that EUR 19.9 billion, or 29% of total EIB financing inside the EU in 2014, were for operations supporting cohesion. It urged the EIB to include in its future annual reports detailed information about the contribution and results achieved towards implementing the objectives of cohesion policy.
The resolution called for EIB financing to be deployed towards the areas most affected by high unemployment, and for more social infrastructure projects. EIB financing should focus primarily on those countries that are lagging behind in terms of infrastructure quality and development, bearing in mind, however, the principle of sound financial management and viability of projects.
Members were concerned by the tendency to finance infrastructure such as motorways, which encourage fossil fuel consumption and therefore run counter to the Union’s long-term objectives of moving towards a carbon-free economy. They called on the EIB to include a compulsory ex-ante assessment of environmental, economic and social added value in the process for selecting projects to be funded inside and outside the EU. They also called for increased support to projects covered by the EU macro-regional strategies.
European Fund for Strategic Investments (EFSI): Parliament welcomed the new EFSI, emphasising the need for the EFSI to function in an effective, fully transparent and fair way. It recommended close cooperation and overview of EFSI operations by Parliament and the European Court of Auditors.
The resolution stressed that the EFSI should benefit all Member States without sectoral and regional pre-allocation, and should also be consistent with ongoing regional or local investment initiatives; emphasises that EFSI funding should also benefit small-scale projects.
Furthermore, it recommended that Member States designate national promotional banks and closer cooperation between the EIB and national promotional banks, financial institutions and investment platforms, in order to pool and share expertise and know-how as well as to better align EIB actions with Member States’ policy priorities.
Members recalled that the EFSI guarantee was meant to enable the EIB to take more risks while maintaining its triple-A rating. They stressed that they will be extremely vigilant in monitoring compliance with this criterion.
In addition, the Parliament called on the EIB:
to seriously assess the financial, social and environmental impact of the Project Bonds Initiative;