Control of the financial activities of the European Investment Bank – annual report 2023
This resolution reviews the European Investment Bank's (EIB) financial activities in 2023, assessing its performance, strategic priorities, and adherence to EU policies. The EIB Group, which includes the EIB and the European Investment Fund (EIF), affects various sectors including SMEs, climate action, defence, and social infrastructure. Key changes and obligations include increased focus on strategic areas like defence and climate action, enhanced transparency requirements, and a commitment to supporting SMEs and innovative projects. The report also addresses the EIB's role in external financing, particularly in Ukraine, and its accountability mechanisms, including fraud prevention and complaints handling.
Analysis
The EIB Group outlined eight strategic priorities for 2024-2027: climate action, digital transformation, defence, cohesion, agriculture, social infrastructure, external financing, and promoting the Capital Markets Union.
What changes
- The statutory limit on the EIB's gearing ratio was raised from 250% to 290% in 2024, enabling increased investment without increasing its equity base.
- The EIB Group approved a Security and Defence Industry Action Plan in May 2024 to support innovation in dual-use technology and enhance the EU's security and defence industry.
- The EIB Group increased its financing targets for REPowerEU from EUR 30 billion to EUR 45 billion by 2027 to bolster EU energy security.
Expected impact
- The EIB's high credit standing and AAA rating are crucial for securing favourable market financing at preferential rates, supporting its business model.
- The EIB Group's investments in the EU in 2023 are projected to create approximately 1,460,000 new jobs by 2027 and boost the EU's GDP by 1.03 percentage points.
- The EIB manages numerous mandates from the Commission, requiring extensive reporting, highlighting the necessity for de-bureaucratisation and simplification.
Limitations
- The document is a European Parliament resolution and does not contain detailed financial statements or operational data beyond what is cited.
- Specific details on the causes of the Northvolt AB bankruptcy and the EIB's evaluation process are requested but not provided within this text.
- The document does not provide a comparative analysis of EIB's performance against other multilateral development banks.
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