MEPs approve EIB's 2023 financial activities, concerns on transparency and governance

MEPs highlight the European Investment Bank's role in climate transition and SME support

Concerns raised over transparency, climate action and global activities

Report includes recommendations for further improvement

The Committee on Budgets adopted its position on the European Investment Bank's 2023 activities, emphasizing climate action, SME support, and governance improvements.

On Wednesday, members of the Committee on Budgets adopted, with 26 votes in favour, one against and two abstentions, an overall supportive stance on the European Investment Bank's (EIB) financial activities in 2023, while also highlighting some criticism. The report was prepared by David Cormand (Greens/EFA, FR).

Transition into the EU Climate Bank

MEPs welcomed the EIB’s progress in becoming the EU Climate Bank. They appreciated the EIB meeting its target to devote half of its resources to climate action and environmental sustainability. However, they call for further alignment with the 1.5-degree pathway and climate neutrality by 2050, emphasizing the need for a just transition.

EIB Global's Strategic Role

The MEPs recognize the significance of EIB Global, the arm of the European Investment Bank that works beyond the European Union, in aligning with EU strategic interests and external policy objectives. They welcome the EIB’s involvement in the Global Gateway initiative, supporting infrastructure and SMEs to enhance the EU’s strategic autonomy. Nonetheless, concerns were raised about ensuring that investments create long-term positive impacts and involve local stakeholders.

Support for Ukraine

The report acknowledges the EIB's efforts in supporting Ukraine, particularly through the EU for Ukraine initiative. MEPs stress the need for increased EU budget guarantees for the EIB to continue vital operations in Ukraine and highlight the importance of aligning with the principles of social, economic, and environmental recovery.

Enhancing Transparency and Governance

MEPs expressed concerns over transparency and governance, emphasizing a need to enhance the public disclosure of project details and adherence to European Ombudsman’s recommendations on environmental and social assessments. They called for increased EIB accountability to EU institutions, including more comprehensive reporting to the European Parliament and an interinstitutional agreement for improved access to documents. Concerns were also raised about governance, particularly in managing conflicts of interest and the need for gender balance in senior EIB roles.

In addition, MEPs

call for the EIB to support projects enhancing social inclusion and reducing inequalities

encourage investments in hydrogen, while also expressing concern about potential environmental impacts

recognize SMEs as crucial to Europe’s economy, calling for more EIB support especially amidst energy crises and inflation

emphasise the need for balancing critical raw materials acquisition with environmental considerations

advocate stringent animal welfare standards in EIB-funded projects

Next Steps

The adopted report still has to be approved by the full house during the 26-29 February plenary session in Strasbourg.

Background

The report on the financial activities of the European Investment Bank is an annual exercise alternating with the Committee on Economic and Monetary Affairs. It touches upon the EIB’s performance and delivery by the EIB Group on its treaty-bound obligations to foster and contribute to EU integration and key horizontal EU policies.