EU to provide guarantee to EIB on external lending

Following the European Parliament's adoption of a decision on granting an EU guarantee to the European Investment Bank (EIB) against losses under financing operations supporting investment projects outside the Union, Andrej Plenković, as the EPP Group Shadow Rapporteur (responsible for authoring the Group's position on the decision), expressed his satisfaction that the EU guarantee for external lending was fixed to a maximum ceiling of 30 billion euros (27 fixed + 3 optional). This was in line with the European Parliament’s position and the joint efforts of the Rapporteur and other shadows.

He recalled that the European Parliament (EP) managed to negotiate an increase of 2 billion euros over the initial Commission proposal, thus achieving key EP and EPP Group objectives. This increase of 2 billion will be financed by using the reflows from unused FEMIP (Facility for Euro-Mediterranean Investment and Partnership) operations dating from before 2007.

Focusing on operations in European Neighbourhood countries

On regional ceilings, an agreement was reached to focus EIB operations on pre-accession countries as well as Neighbourhood and Partnership countries (Mediterranean and Eastern Partnership). This is also in line with the EPP Group position, which focuses on key political priorities for the EU given the wider international context and the objectives of EU foreign policy.

With the political crisis in Ukraine in mind, Plenković sent an important political signal that, in the framework of an enhanced guarantee for financing projects in the European Neighbourhood countries, the EIB should initiate financing projects in Ukraine. The European Investment Bank announced possible financing of projects in Ukraine of 3 billion euros in the next three years.

Contributing to jobs and growth

The decision was adopted in the context of the debate on the 2012 EIB Report on Monday when EIB President Werner Hoyer was present. The EIB is regarded as part of the solution to the crisis within the overall EU efforts. Special emphasis was put on its triple A rating, as well as its contribution to the creation of jobs and growth, support to SMEs and to adapting to climate change, to the development of economic and social infrastructure, as well as the complementarity of EIB loans with the ESIF (European Structural and Investment Funds) grants.

Plenković highlighted Croatia's good experience with EIB external lending. Since 2001 Croatia received 3.2 billion euros for various projects from the EIB.