WRITTEN QUESTION No. 2003/98 by Ursula STENZEL European Investment Bank
Date: 1998-06-30
Institutions: European Parliament, STENZEL
Subjects: EIB loan, European Investment Bank, European Union, accession to the European Union, capital increase, capital market, financial aid

6.11.1999

EN

Official Journal of the European Communities

C 320/3

(1999/C 320/003)

WRITTEN QUESTION E-2003/98

by Ursula Stenzel (PPE) to the Commission

(30 June 1998)

Subject: European Investment Bank

The Finance Ministers of the European Union, in their capacity as governors of the European Investment Bank,
have decided to increase its capital to ECU 100 billion.

Does the Commission regard the granting of loans on favourable terms as a possible means of easing the path
to accession for the candidate countries in the context of the pre-accession strategy?

If so, what practical projects, in the Commision’s view, should be supported?

Answer given by Mr de Silguy on behalf of the Commission

(17 September 1998)

The European Investment Bank (EIB), the Community’s financing agency, provides banking back-up for
investment projects aimed at achieving the Community’s internal and external objectives. To that end, it
borrows on the capital markets the funds necessary to finance its loans (ECU 26 220 million in 1997) to public
or private operators.

Like any bank, the EIB is required to observe a specified ratio between the amount of its subscribed capital and
the maximum outstanding amount of its loans. Its Statute sets the ratio at 1:2.5. When, on 31 December 1997,
the total amount of loans outstanding reached ECU 142 700 million, i.e. close to the theoretical maximum of
ECU 155 000 million, the EIB was to benefit from an increase in its capital so as to enable it to continue its
lending in support of the Community’s objectives. On 5 June 1998 the EIB Governors therefore raised the level
of subscribed capital to ECU 100 000 million with effect from 1 January 1999, with the result that the
theoretical amount of maximum loans outstanding was increased to ECU 250 000 million. That increase in
the EIB’s financing capacity applies to its activities both inside and outside the Community.

Regarding the pre-accession strategy, the EIB, in response to the call by the Ecofin Council in January 1997,
strengthened its support for the candidate countries by setting up at the beginning of 1998 a pre-accession
facility of ECU 3 500 million available until 2000. That facility is in addition to the existing Community
mandate established by the EIB for a similar amount (ECU 3 520 million), thereby doubling the EIB’s capacity
to finance investments in candidate countries. The EIB envisages loans totalling ECU 5 500 million in the
period 1998-1999. The Commission considers this sufficient to finance operations in candidate countries
until January 2000.

The facility and the Community mandate will be used to support candidate countries in preparing for
accession to the Community. Under the partnership agreements, priority will be given to projects promoting
integration and the adoption of Community law in areas such as environmental protection, the development
industrial competitiveness and
of transport and energy networks (especially trans-European networks),
regional development.

As part of the pre-accession strategy, the Commission and the EIB intend to adopt a pro-active stance towards
the co-financing of projects, especially those concerning the environment and transport. Co-financing will
take the form of aid under the Phare programme, alongside EIB loans, so that the costs to candidate countries
will be further reduced. At the end of 1997 the total commitments of the EIB and of the Phare programme for
projects being co-financed amounted to ECU 1 756 million and ECU 719 million respectively.