Debate: Financial activities of the European Investment Bank – annual report  - Control of the financial activities of the European Investment Bank – annual report
Date: WEDNESDAY, 6 JULY 2022
Speaker: Werner Hoyer
Language: EN

These issues have not disappeared, but none of us imagined that Russia was planning a brutal war with global consequences and devastating effects for the Ukrainian people who have suffered until today and beyond. And we would not have imagined, probably most of us, that hunger would be used as a weapon, that the product of development work of decades would be destroyed and famine would return to big parts of the world.  We as Europeans had to react swiftly and in full solidarity with our Ukrainian partners and friends, and we did. We did react with determination and speed, which shows that we can be strong as Europe when we stand shoulder to shoulder.  Let me thank the rapporteurs of the two reports, Ms Corina Crețu and Mr David Cormand, for their excellent work and cooperation. Your reports are extremely relevant and cover the current key challenges the EIB and the EU have to face. I very much appreciate that you acknowledge that the EU’s bank is doing its part, and effectively so. Indeed, reacting when needed is part of our  When Europe turned its focus to attempt to address the climate crisis, we led the way among international financial institutions. In 2021, the share of EIB investments that went into climate action and environmental sustainability projects rose to a record EUR 27.6 billion or 51% of EIB business.  When COVID-19 struck, we responded quickly by rolling out a pan—European guarantee fund across the Union. During the years 2020 and 2021, the EIB Group supported around 850 000 SMEs. In addition, we helped finance COVID vaccines, diagnostics and treatments.  After the Russian war on Ukraine, the EU bank was the first international financial institution to provide financial assistance, disbursing EUR 660 billion within days after the Russian invasion. By the way, talking about Russia, we ended all activities in Russia – and there was a big partnership for modernisation – in 2015 after the annexation of Crimea. So there was no need to call on us to return from Russia.  We stand ready to do more, both in the short-term and in the post-war reconstruction, as we have already announced in Lugano this week with the setting up of the EU-Ukraine Gateway Trust Fund to mobilise funds for Ukraine. We have the experience, the expertise, the financial infrastructure in place to do more under the steering of the Council, the Commission and Parliament, Member States and contributing countries.  We should not forget that this is not a regional conflict. This is a crisis of global dimensions. I thank the rapporteurs very much for acknowledging the impact of the EU bank. I see it as a testament to the strength of the EU bank, of your bank, as an instrument of European economic policy. It’s also a testament of playing our part to what some call strategic autonomy or economic resilience.  Today, this work is again much needed, and the message I would like to convey to you is that we can turn challenges into opportunities if we take the right choices. The war in Ukraine is the strongest possible argument to show we are on the right course in greening our economies and accelerating our independence from fossil fuels. It is easy to hide behind the virus and behind the war when it comes to the climate objectives and GDPs. We will not backtrack on our climate action financing. On the contrary, my ambition is to further step up our work in the light of the current challenges. In particular, investment in green innovation and technologies will be key. Without new solutions, we will not be able to save our planet, nor will we achieve energy independence.  Of course, we also need to look into investments to address short-term needs, but the guiding principles must be the same. We cannot, we must not, invest our money in a way that locks us into an unsustainable path. This is not an idealistic position, nor an ideological one, but for a banker a very rational one. It simply would not be responsible banking, not to mention best banking practice, if you were to invest into assets today that we know we’ll have to write off in five years’ time.  This is where the EIB as a bank also needs to take a different stance from governance. In line with REPowerEU, we are currently developing an ambitious response to help reduce dependence on fossil fuels and fast—forward the Green Transition. I am convinced that we can do both.  Now, at this point in time, dear colleagues, this is no longer a matter of choice, but clearly an imperative. The war in Ukraine is also a reminder of the importance of having a dedicated arm for our activities outside the EU – EIB Global. This decision was spot on. Europe’s economic interests do not stop at its borders. Europe’s foreign policy cannot be separated from its economic interests. Energy, food security, life sciences, pharmaceutics and key information technologies are areas where Europe must be more autonomous.  Finally, let us not forget the backbone of our economies, the small and medium-sized enterprises representing more than 98% of all enterprises, employing almost 70% of all employees, and also often being the main source of innovation. It is in our key interest to further support these companies. We will, of course, keep Parliament informed closely about these developments and our activities in these areas.  I know that issues of accountability, integrity, or standards more generally are of high importance to you, and rightly so. As you mentioned in the reports, we are continuously improving our policies and practices in various fields through a revised transparency policy. The new tripartite agreement with the European Court of Auditors and the European Commission provides a code of conduct for members of the Management Committee and the new environmental and social sustainability framework and, of course, as a matter of top priority, policies related to the well-being of our staff, gender and diversity.  We have come a long way in many areas, but I fully agree with you that we cannot become complacent in this respect, and we take the recommendations in your resolutions very seriously. I am committed to raising the bar even higher. Ladies and gentlemen, thank you very much for your attention and I am looking forward to the debate.