European Investment Bank (EIB) support for EU regional policy is crucial for tackling the economic crisis, EIB President Philippe Maystadt told the Regional Development Committee on Monday.
European Investment Bank (EIB) support for EU regional policy is crucial for tackling the economic crisis, EIB President Philippe Maystadt told the Regional Development Committee on Monday. He was optimistic about introducing new support instruments, yet stressed the need to ensure spending quality.
With a annual lending of €79 billion (almost double that of the World Bank), the EIB is the world's largest financial institution. It contributes to projects in lthe EU's less developed countries and regions in co-operation with the European Commission, which manages EU structural funds and other instruments. According to Mr Maystadt, EIB support is crucial for EU regional policy, as it facilitates the use of structural funds by helping the preparation of specific projects.
A significant part of EIB support goes to so-called “convergence” countries and regions, mostly in new Member States, but also in Spain, Portugal and Greece. Last year it supported 205 projects there, with a total of €29 billion. The biggest beneficiaries in absolute terms were Spain (€4.7 billion), closely followed by Poland (€4.6 billion). Calculating per capita payments, the biggest beneficiary was Estonia, followed by Lithuania, Portugal and Slovenia. More than half of the support went to energy and transport projects, followed by research, development and innovation.
Innovative financial instruments
Lambert Van Nistelrooij (EPP, NL) suggested that, to tackle the current crisis, more inventive financial instruments were needed. Mr Maystadt replied that some innovative instruments already exist, yet the current financial regulation only ensures their budget for one year, which makes it difficult to persuade partners to contribute. With the mid-term review now under way, the next financial regulation should make it easier for them, added Mr Maystadt.
Tackle the crisis
Michail Tremopoulos (Greens/EFA, EL) asked what the EIB can do to tackle the crisis. Mr Maystadt stressed that speedy actions by Member States have “played an extremely positive role”. As the EIB has been requested to act more and faster, it increased its loans from €51 bn previously to €69 bn last year. Most support went to small and medium-sized enterprises (€12 mio), as well as to energy efficiency in new technologies and transport. The EIB also gave more priority to convergence countries. “Yet in some cases we need larger capital base, not just loans”, added Mr Maystadt.
New microfinance facilities
Iosif Matula (EPP, RO) stressed that the joint financial instruments have been largely successful in new Member States, and asked if they could be enlarged. EP Regional Development Committee Chair Danuta Hübner (EPP, PL) supported this suggestion, especially given the fact that the Lisbon Treaty opens more possibilities for local initiatives. Mr Maystadt replied that new microfinance facilities have recently been introduced, aimed at very small enterprises, which cannot be reached by traditional instruments. Yet “we've just reached the cruising speed”, so the main concern now should be good use of the support provided, concluded Mr Maystadt.