Debate: Financial activities of the European Investment Bank – annual report  - Control of the financial activities of the European Investment Bank - annual report
Date: TUESDAY, 11 JULY 2023
Speaker: Werner Hoyer
Language: EN

We face a number of challenges these days, which fuel one another in a vicious circle. From pandemic to war, energy, inflation, climate. But if there is one thing I learned over the past 12 years at the helm of the EIB, it is that this Union can adapt to crises, come out stronger and prove its doubters wrong. Thanks to the strong and decisive actions, the same will be true this time around again. Despite doomsday predictions about energy rationing last winter, our lights stayed on. And one reason for this was that the EIB, your bank, has channelled more than EUR 100 billion in timely investments over the past decade into the EU’s energy sector. We are proud that our financing for renewables, energy efficiency and energy grids has helped secure Europe’s energy supply. And we are proud that our support for cutting edge technologies at the nexus between climate and innovation, such as the world’s first commercial floating wind farms, Europe’s first gigafactory, or the first low-carbon steel manufacturing plants, have helped cement the EU’s leadership role in this critical area. This is not, of course, to suggest that all is well. The way to a carbon neutral European economy is still very long. And also in terms of competitiveness, it’s high time for Europe to step up its game. We have an edge at the intersection between climate and innovation. We took this area seriously long before many others. But we also see that the global race has only just begun. Now, I’m not advocating for broad based fiscal support measures in an inflationary environment, of course, but targeted support in the technologies of tomorrow and their supply chains will be key. I believe that as a Union we can and must do more in this area. At the EIB Group, we are doing our part. In 2022, we exceeded our climate targets of 50% and signed more financing contracts for clean energy projects than ever before. And we committed to do even more, namely another EUR 30 billion on top of our usual lending in the sector to support REPowerEU. If it is up to me, we will raise this bar once again. Ladies and gentlemen, the energy transition is not just a necessity to stave off catastrophic climate change, it plays an important role when it comes to our future competitiveness and it is a critical security priority for our Union. Protecting European sovereignty means standing up for our values. This is nowhere as obviously true as in the case of Ukraine: Europe’s battlefield in the global struggle between freedom and oppression. There again, the EIB has kept on delivering in the last year. We disbursed close to EUR 2 billion in financing, starting only a few days after the invasion began to help the Ukrainian economy stay afloat. But more is needed. That’s why, in the absence of guarantees from the EU budget, we launched our EU for Ukraine trust fund. It enables Member States, the European Commission, and other donors to support the country’s resilience through concrete investment projects. And I’m happy to report that more than a dozen Member States have announced their intentions to contribute to this initiative or will do so in a couple of days, when the first contributions will be signed in the margins of the next Ecofin meeting. But this will be a bridge solution only. We urgently need a long-term plan. The longer we wait, the higher the bill for the rebuilding of Ukraine’s economy will be. To ensure that we can operate in Ukraine in 2024 and beyond, it is absolutely necessary that the bank receives dedicated budget guarantees again from the EU budget. And this is being done quickly. We need your support to make this happen. We cannot afford to lose time. Yes, military support is important, crucial. But we must not forget the critical role of the Ukrainian economy, it forms the backbone of the impressive resistance that we have seen over the past 500 days, and it will form the main source of funding for any reconstruction effort later on. We cannot wait until the ink under a peace treaty is dry. Investing in Ukraine’s economy today means investing in Ukraine’s future as an independent state. And one day, a member of the European Union. By the way, each euro of EIB support is wired if, and only if, we see progress on the ground. We do not pay out loans in one go. We disburse the funds when they are really needed, brick by brick. We are determined to support the country, but we are not naive. Ladies and gentlemen, while the EIB does not finance guns or explosives for very good reasons, we do back European security with financing of high tech projects with dual use applications. This includes cutting edge technologies that have civilian applications such as aerospace – think of drones, helicopters, satellites, as well as cybersecurity. Here too, we exceeded our targets and delivered well over EUR 1 billion of high tech projects last year. Our board just approved that we step up our opportunities in this area even further. Ladies and gentlemen, in a multipolar world, EU needs to show that it puts its money where the mouth is. It would be one of the biggest strategic blunders to lose what is sometimes referred to as the Global South in the battle for influence between China, Russia and the US. Even more so collectively, we are one of the biggest investors globally. The problem is too few people know about this. The activities of the EU outside of its borders are often fragmented, poorly coordinated, and importantly, not communicated strongly. This is one of the reasons why we launched EIB Global last year, a dedicated branch for EIB operations outside of the EU, 100% owned by the EU and operated under the flag of the EU. And this development has been spot on. The EIB has been one of the largest project financiers on behalf of the EU in developing countries for nearly six decades. We have finally, some of the most impressive infrastructure projects worldwide with the Panama Canal, the Aqaba-Amman water pipeline, the Lake Turkana wind farms – the largest wind farms in Africa – exporting EU sector knowledge across the globe. And all this has made a real and tangible difference. Impact is what counts. With the set setup of EIB Global, we want to double down on this experience with more staff in the field, a clearer visual identity and a strong sense of cooperation – which is, by the way, why I continue to believe that the best setup for EIB Global is one where not only EU Member States are shareholders, as is the case today, but also the development finance institutions and the European Commission. The EIB must play a strong role in multilateral fora, but it also needs to show its own flag abroad. None of what the EIB is doing outside the European Union comes at the expense of operations within the Union, by the way. Almost half of all lending in the EU last year was in cohesion regions. Equitable growth and the convergence of living standards remain key pillars of what we do. And the same goes for innovation, which has remained a top priority for us. Ladies and gentlemen, let me stop here. These are just some examples of the bank’s work since we last met. Thanks to the creativity and determination of our staff and thanks to your support, the EU bank, your bank turns crisis into opportunities and opportunities into realities. Ladies and gentlemen, this is probably my last annual address to you. Let me take this opportunity to thank you all for your support over the years. We have come a long way together. And if I may, while it has not always been an easy discussion, I think we have made a difference together. Today is by far not yet the time to say goodbye. Lots still needs to be done. You count on me to keep on pushing for more Europe and the greener, more digital and more resilient future for all of us.